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Trailing Drawdown, Explained
3:06 · 8 chapters · Forex lessons, part 73
What you'll learn
A trailing floor rises with your highs, so you can breach it while still in profit. Know today's floor before you trade.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- How a trailing floor differs from a fixed one, with numbers
- Key point 2
- How an account can be closed while it is still in profit
- Key point 3
- Why equity trailing is harsher than balance trailing
- Key point 4
- End-of-day vs intraday trailing on the same trading day
- Key point 5
- Where many firms lock the floor, and why reaching it matters
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.