Daily Drawdown Rules, Explained Without the Jargon
By The Prop Table Editorial Team
Direct Answer
Daily drawdown caps how much you can lose in a single trading day before the account is breached. Most firms calculate it as 4–5% of starting balance, measured either on end-of-day equity (forgiving) or live intraday equity (strict). The intraday-equity variant kills more accounts than any other prop firm rule.
Every prop firm has a daily drawdown rule and almost none of them define it the same way. Understanding which variant your firm uses is the difference between a sustainable funded career and a $99 lesson.
Not financial advice.