What is Daily Drawdown?

Explains daily loss rule.

Daily Drawdown is the maximum permitted loss within a Trading Day. A Trading Day runs from 17:00:00 New York Time to 16:59:59 New York Time the following day.

Open equity and floating losses are included. A Daily Drawdown breach is a Hard Breach and results in immediate account closure. There is no warning and no Strike.

Related Terms: Sections 2 and 7.4