What is the Buffer?
The Buffer is an equity level 5.75% above your starting equity. Until you reach it, your loss limit trails your equity peak. Once you reach it, your loss limit locks permanently at 0.75% above your starting equity.
Buffer = Starting equity + (Starting equity × 5.75%)
Locked loss limit = Buffer − Maximum drawdown
On the Basic Options Plan, the Buffer is checked in real time. Profit on open trades counts toward reaching it.
Examples and Calculations
Account size | Buffer | Maximum drawdown | Locked loss limit |
$10,000 | $10,575 | $500 | $10,075 |
$50,000 | $52,875 | $2,500 | $50,375 |
$75,000 | $79,312.50 | $3,750 | $75,562.50 |
$100,000 | $105,750 | $5,000 | $100,750 |
$150,000 | $158,625 | $7,500 | $151,125 |
Worked Example: $10,000 Performance Account
When | What happens | Equity | Loss limit |
Start | Account opens | $10,000 | $9,500 |
Day 1 | Your equity peaks at $10,300 | $10,300 | $9,800 (trailing) |
Day 2 | An open trade takes your equity to $10,575 | $10,575 | $10,075 (locked) |
Day 3 | Your equity grows to $11,000 | $11,000 | $10,075 |
Once your loss limit locks, it never moves again. It doesn't rise as your equity grows, and it doesn't fall when you withdraw.
How Much Can I Withdraw?
You can withdraw up to all of your profit. But your loss limit doesn't move when you withdraw. If your equity after the payout is at or below your loss limit, you'll receive the payout and your account will be breached.
Example: Your $10,000 account is at $10,800 and your loss limit is locked at $10,075. You can request the full $800, but your equity would drop to $10,000. That's below your loss limit, so the account would be breached.
To keep your account, your equity after the payout must stay above $10,075. If you withdraw $700, your equity drops to $10,100. That leaves only $25 of room, so any open trade that moves $25 against you breaches the account.
Tip: If you want to keep trading after a payout, leave enough room above your loss limit to cover normal moves in your positions.
Frequently Asked Questions
Does profit on open trades count toward reaching the Buffer?
Yes. On the Basic Options Plan, the Buffer uses the same real-time equity as your trailing drawdown, including open trades.
Does my locked loss limit ever change?
No. It stays at the same level for the life of that Performance Account.
Can I withdraw all of my profit?
Yes. You'll receive the payout, but if your equity ends at or below your loss limit, the account is breached.
Do I need to reach the Buffer before requesting a payout?
No. The Buffer only changes how your loss limit works. It doesn't affect payout eligibility.