Drawdown
Drawdown
Drawdown is a risk limit on how far your Challenge session equity can decline from the reference level defined by that Challenge. If you breach the allowed drawdown under the Challenge rules, the Challenge can fail.
What to know
- Exact calculation follows the Challenge's published rules.
- Different Challenges may use different drawdown styles, including static or trailing, when listed on the offer.
- Drawdown is separate from the profit target: you can be progressing toward a target and still fail if you breach risk limits.
Always read the drawdown (or maximum drawdown) section on the Challenge you start.