Glossary · D
What is Drawdown?
The fall in account value from its highest point. Prop firms use static, end-of-day trailing or intraday trailing drawdown floors.
In context
Drawdown is the fall from the highest point of your account. Prop firms (companies that give traders a "funded" account after an evaluation) usually set a maximum drawdown: a floor below which the account is closed. The rules differ by firm; what follows is a general description of the mechanics, not an endorsement or review of any firm. Read each firm's rules at the source.
Learn it in depth
Related terms
Every term in context, with real gold examples: the free 301-page eBook.
Get the free PDFRead the academy