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How is Maximum Daily Drawdown calculated?

All Levels accounts have a Maximum Daily Drawdown of 5% based on the end-of-day closing balance. This drawdown is calculated daily at 23:05 CET.

Example 1: Equity is higher than the balance at the start of the day
At the start of day 5, your account balance is $ 105.000, and your equity is $ 107.000. The Daily Loss Limit is 5% of the equity because it is higher:

Daily loss = $ 107.000 * 5% = $ 5.350 Daily Loss Limit.

This means your equity can’t go below $ 107.000 — $ 5.350. Daily Loss Limit= $ 101.650 on day 5.

If your equity goes below $ 101.650 at any moment on day 5, your account will be closed.

Example 2: Balance is higher than the equity at the start of the day

At the start of day 7, your account balance is $ 100.000, and your equity is $ 99.000. The Daily Loss Limit is 5% of the balance because it is higher:

Daily loss = $ 100.000 * 5% = $ 5.000 Daily Loss Limit.

This means your equity can’t go lower than $ 100.000 — $ 5.000. Daily Loss Limit= $ 95.000 on day 7.

If your equity goes below $ 95.000 at any moment on day 7, your account will be closed.
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