How does the Max drawdown work?

Written by Prime Funders
Updated 1 year ago

The Maximum Total Loss is the overall amount a trader can lose on their account.

The maximum total loss allowed in your account is 8%. Example using a $100,000 account: Max total loss is 8% of your initial balance = $8,000. Your account equity including unrealized/floating positions must not hit/exceed below $92,000.

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