Instant Funding Lock Upon Payout
In Instant Funded Accounts, when you request a payout, your maximum trailing drawdown will lock in at the starting balance. From the moment you make a payout, the drawdown no longer trails with your account growth, regardless of how much you continue to grow your account.
How the Lock Upon Payout Works:
When you grow your account and request a payout, the maximum drawdown locks in at your initial account balance. Here are two examples to illustrate this:
Example 1:
Initial Balance: $10,000
Balance after Gains: $11,000
Payout Request: $500
Locked Drawdown: $10,000
In this case, after your $500 payout, your maximum drawdown locks at $10,000, leaving you with $500 of drawdown room before reaching your limit.
Example 2:
Initial Balance: $10,000
Balance after Gains: $11,000
Withdrawal Request: $950
Locked Drawdown: $10,000
With this larger withdrawal, your drawdown remains locked at $10,000, leaving you with only $50 of drawdown room before breaching your account.
Important Considerations:
We understand that you may be eager to withdraw your gains, but I want to ensure that you don't put your account at risk. If your drawdown reaches your starting balance, it could potentially lead to breaching your account on your next trade(s). To avoid this, we have a couple of recommendations for you:
Leave Some Gains as a Buffer: Instead of withdrawing the full amount of your gains, consider leaving some in your account. This will give you more breathing room and reduce the risk of breaching your account.
Grow Your Account Further: Another option is to grow your account by an additional 5-10% before taking your payout. This will give you a larger cushion and increase the likelihood of growing and compounding your account.
Of course, the decision is ultimately yours. We are happy to process your payout, but our goal is to see you have many successful payouts with us in the future. We don't want you to jeopardize your account in any way.
Why This Rule Exists:
The drawdown lock upon payout is designed to protect firm capital and ensure long-term sustainability for both traders and the firm. This rule encourages traders to focus on long-term growth and compounding, which can lead to significantly larger payouts over time. By locking the drawdown at the starting balance after each withdrawal, traders are incentivized to manage their accounts with discipline and focus on continued growth.
This rule provides a safety net for your trading, ensuring that your progress remains intact while also promoting sustainable, long-term success. For more information or questions, feel free to reach out to our support team.