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How Payouts Impact Drawdown on 1-Step "Flash" Accounts
How Payouts Impact Drawdown on 1-Step "Flash" Accounts

Understanding the effect of payout requests on 1-Step-flash accounts

Dylan avatar
Written by Dylan
Updated over 3 months ago

1-Step "Flash" Lock Upon Payout

When you request a payout on a 1-Step "Flash" account, your maximum trailing drawdown will lock in at the starting balance. From that point on, the drawdown does not trail further, regardless of how much your account grows.


Example:

  • If you have a $100,000 account and grow it to $110,000, requesting a $5,000 withdrawal will lock your maximum drawdown at $100,000. This will leave you with $5,000 of drawdown room.

  • If you request a $9,500 withdrawal from the same account, you would be left with only $500 of drawdown room before breaching your account.


Important Note:

This drawdown rule is designed to protect firm capital, ensuring long-term sustainability. It also encourages traders to focus on long-term growth and compounding, which can lead to significantly larger payouts over time.

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