Skip to main content

What does "drawdown lock" or "DD Lock" mean?

Important for Funded Accounts

The drawdown continues to trail normally as your account reaches new equity highs until it reaches your account's initial starting balance. Once it reaches the starting balance, it locks permanently and will not trail any higher.

Requesting or receiving a payout does not automatically move or lock your drawdown at the starting balance. Your drawdown remains wherever it was before the payout.

Example

On a $50,000 funded account:

• Current account balance: $51,000

• Current drawdown floor: $49,000

If you request a $1,000 payout, your account balance becomes $50,000, but your drawdown floor remains at $49,000 because it had not yet reached the starting balance before the payout.

This means you now have $1,000 of remaining drawdown room.

Only after the drawdown naturally reaches your account's initial starting balance does it lock permanently.

Once the drawdown has locked at the starting balance, it will remain there even after future payouts. If your balance later falls below the starting balance, the account will be breached.


Does requesting a payout lock my drawdown at the starting balance?

No.

Requesting or receiving a payout does not change the position of your drawdown floor.

The drawdown continues to trail according to your account rules until it naturally reaches your account's initial starting balance. Only then does it lock permanently.

If the drawdown has not yet reached the starting balance before the payout, it will remain at its current level after the payout.

Did this answer your question?