Drawdown and risk limits
Drawdown reset
The moment a drawdown calculation is recalculated from a new reference level - most often the daily loss limit rolling over to a new day, or an account level being restated after a withdrawal.
GFN’s figure
GFN's daily loss limit resets at the time shown in your dashboard - not local midnight - and the reset does not erase the effect of earlier losses on maximum drawdown. On Instant, a withdrawal also restates the account level and its floor.
- Daily reset
- At the time shown in the dashboard
- Effect on maximum drawdown
- None - overall drawdown carries forward
- InstantAfter a withdrawal
- Account level and floor are restated
In detail
Drawdown reset,explained
The daily reset is the one traders meet first. It happens at a fixed time set by the firm rather than at local midnight, and getting it wrong by a few hours means starting a session with a fraction of the allowance you assumed.
A reset never erases the overall drawdown. A new trading day gives you a fresh daily allowance, but the losses from yesterday still sit against the account-level floor.
Worked example
On a $100,000 Instant account showing $6,000 of profit, a withdrawal takes everything above the 3% buffer: $3,000 leaves the account, you receive up to the 2% cap ($2,000), and the account restates to $103,000 against a $98,000 floor.
Related
Terms thatcome with it
Most rules only make sense next to the ones they interact with. These are the entries this one depends on.
Daily loss limit
The most an account may lose in one trading day before it breaches. Calculated as a percentage of the previous day's closing level, it resets at a fixed time each day and is the rule that ends most evaluations.
Withdrawal cap
A limit on how much may be taken out of a funded account in one payout cycle, usually a percentage of the starting balance. Profit above the cap stays in the account or is removed without being paid.
Drawdown floor
The account level at which a maximum drawdown breach is recorded. It is the starting balance minus the drawdown allowance, expressed as a dollar figure rather than a percentage, and it is the single number to trade against.
End-of-day drawdown
A drawdown calculated only from the closing balance of each trading day, ignoring whatever happened between the open and the close. Intraday excursions are invisible to it as long as the day finishes above the level.
Minimum withdrawal
The smallest amount a firm will process, or the profit an account must hold before any withdrawal is permitted. The second form is a buffer that has to stay in the account rather than a transaction floor.
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