Static drawdown is the trader-friendly option and firms that offer it tend to say so prominently. Read carefully whether it is measured on closed balance or on equity including floating loss — the label "static" only fixes the level, not what is measured against it.
Static drawdown
Risk rules
A maximum loss level calculated once from your starting balance and never recalculated. A 10% static drawdown on a $100,000 account means the account closes at $90,000 whether your equity peaked at $101,000 or $130,000.
How firms apply it
What it means for your trading
Every dollar of profit widens the gap between your equity and the breach level, so risk can grow with the account rather than staying pinned to the opening size. This is the single biggest reason two firms advertising the same percentage are not offering the same product.
Which firms use it
Work this out for your account
Your real stop distance under static or trailing rules.
Related terms