Daily Drawdown Limit: The Daily Drawdown Limit sets the maximum amount you can lose in a single trading day, based on a percentage of your initial account balance. It resets every day at midnight (server time).
For Evaluation, Express, and Stellar 2-Step Accounts: You can lose up to 5% of your initial balance each day. For a $100,000 account, the daily limit is $5,000.
Stellar 1-Step Account: The limit is 3%, meaning a maximum daily loss of $3,000 for a $100,000 account.
Stellar Lite Account: The limit is 4%, allowing a maximum loss of $4,000 per day for a $100,000 account.
Example: If you start with $100,000 and make a $2,000 profit by noon, your new drawdown limit for that day becomes $7,000 ($5,000 + $2,000). Exceeding this limit, either through closed or open trades, will result in your account being paused.
Overall Drawdown Limit: The Overall Drawdown Limit governs how much you can lose during the entire trading cycle, not just in one day. It is based on your initial balance and applies throughout the Challenge Account or FundedNext Account phase.
For Evaluation, Express, and Stellar 2-Step Accounts: The Overall Drawdown Limit is 10% of your initial balance. For a $100,000 account, you cannot let your balance fall below $90,000.
Stellar 1-Step Account: The Overall Drawdown Limit is 6%, meaning your balance cannot drop below $94,000.
Stellar Lite Account: The Overall Drawdown Limit is 8%, so your account cannot fall below $92,000.
Example: If you make a $4,000 profit on a $100,000 account, your new Overall Drawdown Limit increases to $14,000 (original $10,000 limit + $4,000 profit). If your balance falls below $90,000, you breach the Overall Drawdown Limit.
Breach Consequences:
Daily Drawdown Limit Breach:
If you exceed your Daily Drawdown Limit but not the Overall Drawdown Limit, your account will be paused, and you won’t be able to place any trades.
The Challenge Account will remain paused until you reset it.
If you have breached a FundedNext Account, you will need to restart with a new Challenge Account.
Overall Drawdown Limit Breach:
If you breach the Overall Drawdown Limit, your account will be paused, and you will not be able to continue trading on that Challenge Account until you reset it.
If you have breached a FundedNext Account, you will need to restart with a new Challenge Account.
Summary:
If you breach your Daily Drawdown Limit but did not breach your Overall Drawdown Limit, your account will be paused, and you will not be able to place a trade.
Your Challenge Account will not be reactivated at the end of the day until you reset it.
If you breach a FundedNext Account, you will need to restart with a new Challenge Account.