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Intermediate

Daily Drawdown

How much your account has fallen within a single trading day.

Definition

Daily drawdown is the loss measured inside one day, usually from the day’s starting balance or peak. Prop firms often cap it to prevent a single bad day from blowing up an account. Watching it helps you stop before a rough day turns into a disaster.

Example

You started the day at 10,000 and fell to 9,500 at the low. Your daily drawdown is 5% for that day.

Related terms

Where you see this in the app

Educational content only. Map.Trade does not provide financial advice or trading signals.

Why it matters

On prop accounts, daily drawdown is the single most common breach — usually from one oversized or floating loss.

Frequently asked questions

Is it measured on balance or equity?

Most firms use equity, including open trades; always confirm your firm’s exact rule.

When does it reset?

Typically at the firm’s daily server reset time.

Daily Drawdown — Trading Glossary · Map.Trade