What Is Drawdown?
Drawdown is the drop from your account's peak balance to a later low. Maximum drawdown is the floor that, if hit, ends the account.
Drawdown explained
In funded trading, drawdown is the drop from your account's peak balance to a later low. Maximum drawdown is the floor that, if hit, ends the account.
Understanding it's part of trading inside the rules and keeping your account.
Why it matters on a funded account
Every funded account is governed by clear numbers, and drawdown is one of them. Knowing exactly how it's calculated keeps you on the right side of the rules.
Frequently Asked
What does drawdown mean?+
Drawdown is the drop from your account's peak balance to a later low. Maximum drawdown is the floor that, if hit, ends the account.
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Last updated 2026-06-11.