Drawdown floor
The drawdown floor is the account balance at which the account is closed for breaching its loss limit.
How it works
It is a single number maintained by the firm's risk system, updated according to the account's drawdown model — continuously on intraday accounts, once daily on EOD accounts, never on static accounts. Crossing it ends the account immediately; there is no grace period and no appeal for a rule-based breach, because the floor is arithmetic rather than judgement.
Why it matters on a funded account
Every sizing decision on a funded account is ultimately a statement about the floor. Risk per trade expressed as a percentage of account balance is a different number from risk expressed as a fraction of the distance to the floor, and only the second one describes the actual constraint.
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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.
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