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Tanya Jawab General Trading How does your Max Drawdown work?

How does your Max Drawdown work?

The term Max Drawdown is used to describe the maximum amount you can lose across the lifetime of your demo account. Once you reach the Max Drawdown limit, your demo account will be breached and will be automatically closed. Please note commissions for executing trades will be calculated in your P&L.


Important Note:

If your equity drops below your Drawdown limit, your account is considered breached and immediately disabled.
A notification is then sent to your dashboard to close the open positions that took you into negative equity and also close the account. This action usually takes up to 30 seconds.
In the process of those 30 seconds, if there is positive movement of your open position, you may see that your account was breached, but your equity is above the Drawdown limit. Although we understand this may cause confusion, due to the markets being volatile we are unable to breach accounts in real-time, but rest assured no account is ever breached unless the equity drops below the Drawdown limit.
If you have any concerns regarding this, feel free to go through your trades to confirm.