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Drawdown & Risk Limits – Instant Funding

Quick answer: Four limits stack on Instant Funding: 3% daily drawdown, 6% trailing maximum, a 2.5% combined risk cap per asset, and TraderProtect closing everything at 2% floating loss.

Daily drawdown — 3%

$3,000 on a $100,000 account, monitored on equity, reset at 5pm EDT. If equity touches the level at any point the account is breached — even if the market recovers seconds later.

Maximum drawdown — 6% trailing

Follows your highest achieved equity upward and never comes back down:

Highest equity

Level

$100,000 (start)

$94,000

$103,000

$97,000

$106,000 (+6%)

$100,000 — locks

The level uses highest achieved equity, which can include an intraday floating high — it can move up before you close a position, and won't move down after. See How Trailing Drawdown Works (Visual Examples).

Maximum risk per asset — 2.5%

Combined risk across all open positions on one asset. Existing positions at 1.5% plus a new one at 1.2% is 2.7% — over the limit, though neither exceeds 2.5% alone. Layered entries on the same symbol are assessed together, including scaling entries inside the two-minute / five-pip allowance.

TraderProtect

A protective closure, not a prohibition. At 2% total floating loss, all open positions across all symbols close.

Event

Outcome

First

Soft breach — trading continues immediately

Second

Account becomes inactive

TraderProtect does not change the daily or maximum drawdown rules, and it isn't a guarantee the account can't breach.

See also: Why Was My Trade Closed Automatically? · Reading Your Trader Area

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