Equity-Based Drawdown

Risk Management

Definition

Drawdown calculated from your real-time equity (including unrealized P&L), not just closed trades. Stricter than balance-based.

Example

Your balance is $50,000 but open trades show -$3,000 unrealized. Your equity is $47,000 — that counts toward the drawdown limit.

Related terms

• End-of-Day Drawdown
• Trailing Drawdown

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