Drawdown in simple words: static, trailing, daily
Drawdown is the rule that ends most challenges. Know exactly how your firm measures it.
Static drawdown
Static means the loss limit is fixed at the starting balance. $100,000 account, 10% limit: if equity falls below $90,000, the account fails. Earlier profit does not change this.
This is the easiest type. Every dollar of profit gives you more room.
Trailing drawdown
Trailing means the limit follows your highest balance up. You make $4,000: a 6% trailing limit moves from $94,000 to $98,000. Lose that profit and the account fails, even above the starting balance.
Some firms stop the trailing when the limit reaches the starting balance. Our program pages show the exact rule.
Daily loss limit
Usually measured from the balance or equity at the start of the trading day. The day often starts at midnight server time, not Pakistan time. Open trades count, so a floating loss can break the limit.
How to stay safe
Risk a small fixed amount per trade (0.5–1%). Stop for the day after a set loss. Never let one trade put the daily limit in danger. See how to pass a challenge.
FAQ
Which type is best?
Static gives the most room. Trailing is harder, mostly at the start when you have little profit.
Does the day reset at midnight Pakistan time?
Usually not. Most firms reset at midnight server time. Check this before you trade.