The full answer
Maximum Drawdown is the total amount your account is permitted to decline before the account is breached.
You can think of it as the overall account stop-loss.
Drawdown & risk
What is Maximum Drawdown?
Maximum Drawdown is the total amount your account is permitted to decline before the account is breached.
Related questions
Drawdown & risk
Should I trade right up to the Daily Loss Limit?
We strongly advise against it.
Drawdown & risk
Is Maximum Drawdown the same on every GFN plan?
No. Different plans can use different Maximum Drawdown limits and calculation methods.
Drawdown & risk
What is fixed drawdown?
A fixed drawdown level is calculated relative to a defined account level and does not continue trailing upward simply because the account makes additional profit.
Drawdown & risk
What is relative or trailing drawdown?
A relative or trailing drawdown can move as the account reaches new performance highs according to the rules of the specific program.
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