PROP FIRM DRAWDOWN RULES

WHAT IS DRAWDOWN?

Drawdown is the loss from your account peak. Prop firms set maximum allowed drawdown.

DAILY DRAWDOWN

Maximum loss in one trading day. Usually 4-5%.

TOTAL DRAWDOWN

Maximum loss from starting balance. Usually 10-12%.

WHAT HAPPENS IF YOU BREACH?

Account termination. You lose the funded account.

HOW TO STAY SAFE

• Never risk more than 1-2% per trade
• Stop trading at 50% of daily limit
• Use proper position sizing

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