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Static Drawdown

This article explains Market Masters risk limits, including the 8% static daily loss and 12% static maximum loss, what static drawdown means, the hard breach policy, and how stop out and margin level restrictions work.

Will | Paid To Trade avatar
Written by Will | Paid To Trade
Updated over 2 weeks ago

Market Masters uses a static daily loss limit and a static maximum loss limit.

Daily loss limit

8% static daily loss

Maximum loss limit

12% static maximum loss

Hard breach policy

Hitting either the daily loss limit or the maximum loss limit is a hard breach.

What static means

Static means the limits do not trail upward. They remain fixed based on the account’s configured balance.

No Daily Loss clarification

No Daily Loss applies to Paid To Trade Starter and Pro accounts.

Market Masters is a separate program and operates under a different risk framework, with:
8% static daily loss limit
12% static maximum loss limit

What is a stop out and how does it work

A stop out is an automatic mechanism that can close positions if your margin level falls too low.

Stop out threshold

If your margin level drops below 30 percent, the stop out mechanism may trigger and positions can be closed automatically, starting from the biggest losing positions, until margin level rises back above the required threshold.

Margin level restriction at 100 percent

If your margin level falls below 100 percent, you cannot open new positions that increase net exposure. You can only place trades that reduce net exposure until your margin level recovers.

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