What is Intraday Trailing Drawdown?
On the Basic Options Plan, your loss limit rises in real time as your equity reaches new highs, including profit on open trades. It never moves down.
Loss limit = Equity peak − Maximum drawdown
This means a trade that goes up a lot also moves your loss limit up a lot, even before you close it.
Worked Example: $10,000 Account
Maximum drawdown is $500, so your loss limit starts at $9,500.
When | What happens | Equity Peak | Equity | Loss limit | Room left |
Start | Account opens | $10,000 | $10,000 | $9,500 | $500 |
Day 1, Trade 1 (open) | Your calls rise and your equity peaks at $10,300 | $10,300 | $10,300 | $9,800 | $500 |
Day 1, Trade 1 (closed) | You close at $10,200 | $10,300 | $10,200 | $9,800 | $400 |
Day 1, Trade 2 | A losing trade | $10,300 | $10,000 | $9,800 | $200 |
Day 2, start | Your loss limit carries over | $10,300 | $10,000 | $9,800 | $200 |
Day 2, Trade 3 (open) | An open position dips your equity to $9,800 | $10,300 | $9,800 | $9,800 | Breached |
What to notice:
In Trade 1, your loss limit moved to $9,800 based on the $10,300 equity peak while the trade was open, not the $10,200 you closed at.
In Trade 2, your equity fell but your loss limit stayed at $9,800. It never moves down.
In Trade 3, the account was breached the moment your equity reached $9,800, even though the trade was still open and might have recovered.
Basic vs Advanced: How the Loss Limit Moves
| Basic Options | Advanced Options |
When your loss limit moves up | In real time, as your equity hits new highs (including open trades) | Once a day, after market close, based on your end-of-day equity |
Can you be breached intraday? | Yes | Yes |
What causes a breach | Your equity, including open trades, reaches your loss limit | Your equity, including open trades, reaches your loss limit |
Frequently Asked Questions
Does profit on open trades count?
Yes. Your equity peak includes unrealized profit, so your loss limit can move up while a trade is still open.
Can my loss limit go back down?
No. It only moves up, even if you lose money afterward.
Does my loss limit reset overnight?
No. It carries over to the next day. If you have a $500 maximum drawdown and you're down $300 at the close, you start the next day with only $200 of room.
Can my account be breached during the day?
Yes. If your equity, including open trades, reaches your loss limit at any moment, the account is breached.
Where can I see my current loss limit?
Check your Vanquish dashboard, and track your open positions in DxTrade to manage your risk.
Does my loss limit ever stop trailing?
Yes, on a Performance Account. Once you reach the Buffer, your loss limit locks permanently. See Basic Options Plan - Buffer.