End-of-Day Drawdown

Risk Management

Definition

Your max loss is calculated only at market close, not during the day. Open floating losses don't count until the session ends.

Example

You start the day at $50,000. During trading, equity drops to $47,000 but recovers to $49,500 by close. No violation — only the closing balance matters.

Related terms

All glossary terms | Trailing Drawdown →