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Frequently Asked Questions

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How Max Loss is calculated?

The Basics

  • Max Loss Limit is the maximum amount you can lose in total on your account.
  • Max Loss Limits by program:
    • Instant Funding: 10% (Smart Drawdown, see full explanation here)
    • IF Micro: 6%.
    • One-Phase: 8%.
    • One-Phase Micro: 6%
    • Two-Phase: 10%.
    • Two-Phase Max: 10%.

Static Drawdown (All programs except Instant Funding)

  • For all programs except Instant Funding, Max Loss is static — it is based on your initial account balance and does not increase with profits.
  • Example: you start with a $100,000 account in the Two-Phase program. The Max Loss Limit is 10%, so you cannot let your Balance or Equity drop below $90,000 at any time.

Smart Drawdown (Instant Funding)

  • Instant Funding uses a Smart Drawdown system, you can read the full explanation here.
  • It starts at -10% and automatically adjusts to -5% once you achieve a 5% gain on your account balance. After that point, the drawdown remains fixed at -5% of your starting balance, even if your profits grow.
  • Example: starting balance: $10,000, initial drawdown limit: $9,000 (-10%). After reaching a 5% gain ($10,500), the new drawdown limit becomes $9,500 (-5%) — and stays fixed going forward.

Implications

  • If your Equity or Balance falls below the Max Loss Limit, the account is breached.

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Please note that all accounts we provide to our clients are demo accounts with fictitious funds, and any trading is in a simulated environment only. For more information, please feel free to visit our FAQ section. Ok, I understand

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