Max Drawdown
The total loss limit for a funded account; exceeding it ends the agreement.
Why Max Drawdown Matters
Understanding Max Drawdown helps you compare brokers on prop trading and avoid surprises. It's one of the details our reviews check so you can judge a broker on evidence, not marketing.
Example of Max Drawdown
When you read a MyTradingReviews listing, Max Drawdown is one of the data points we verify and display — so you can see exactly how each broker handles it before you open an account.
Compare how each broker handles max drawdown in our independent broker reviews and the comparison tool.
Definitions follow one published methodology — verified data, real accounts and dated evidence, not marketing. When a broker changes its terms, the reviews change with it.
Related Terms
A company that gives traders access to the firm's capital in exchange for a share of profits.
A trading account financed by a prop firm after the trader passes an evaluation.
A test phase where a trader must hit a profit target within risk limits to earn a funded account.
The maximum amount a funded account may lose in a single day before breaching the rules.