Floating drawdown is the unrealised loss on a trade that is still open. Because the trade has not been closed yet, the loss is not final – it can still recover or worsen depending on how the market moves.
Example: You open a gold trade and the market moves against you by $150. You have not closed the trade yet. Your current floating drawdown is $150. If the market recovers, that number reduces. If it moves further against you, it increases. The moment you close the trade, the loss becomes realised and final.
