WickCheck / Trading school / Maximum loss limit
Maximum loss limitMax drawdownBeginner
The total loss allowed from the starting balance, often 8–10%.
What it means
Static max loss is measured from the starting balance; trailing max loss follows your highest balance or equity, which is much stricter.
How to spot it
- Know whether it is static or trailing.
Common mistakes
- Treating a trailing limit like a static one.
Related terms
Daily loss limitThe most you can lose in one day before the account fails, often 4–5%.…Trailing drawdownA loss limit that moves up with your highest balance or equity.…DrawdownThe fall from an account's peak to its lowest point before a new peak. Max drawd…
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Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.