Buffer
The buffer is the distance between the current account balance and the drawdown floor — the amount the account can actually lose before it ends.
How it works
On a static account the buffer grows with every dollar of profit. On a trailing account it does not: the floor follows the balance up, so the distance stays roughly constant until the floor locks. Once locked — commonly at starting balance plus $100 — accumulated profit becomes real cushion and the buffer widens for the first time. Firms differ on how quickly the lock happens and on whether the buffer resets after a payout.
Why it matters on a funded account
Position size has to fit inside the buffer on every trade, not inside the headline drawdown number. Two accounts with the same advertised drawdown can have very different buffers depending on the model and how much profit is banked. This is the single number that decides whether a strategy survives a normal losing streak.
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Part of the Puravida Edge prop trading glossary. Firm-specific figures verified September 2026; rules change frequently — confirm on the firm's site.