Glossary · Maximum loss
What is maximum loss?
The total amount your account can fall before it's closed.
The maximum loss, also called max drawdown, is the hard floor for your account. Cross it at any time and the account fails.
How the floor moves depends on the drawdown type: static floors never move, trailing floors follow your highest balance or equity.
Example
A 10% static max loss on $100K puts the floor at $90,000 for the life of the account.