How do payouts affect my account balance and loss limit?
When you ask for a payout, the money you take out comes from your account balance. This means your balance moves closer to your loss limit. It is very important to watch this carefully, because if your balance gets too close to your loss limit, your account could be at risk of closing.
Example:
If you have a $50,000 Basic Options Plan, your profit buffer is reached at $52,875.
If your account is at $51,000 and you request a $1,000 payout, your new balance will be $50,000.
This also moves your loss limit to $48,500.
You can track this by using these simple steps:
Equity peak - Drawdown = Loss Limit
Equity peak - Payout = New Balance
Requesting a Payout Before Reaching the Profit Buffer
If you ask for a payout before hitting your profit buffer, the payout amount comes straight out of your account balance. This makes your balance lower and brings you closer to your loss limit.
Example:
For a $50,000 plan, the buffer is at $52,875. If you have $51,000 and request $1,000, your balance becomes $50,000 and your loss limit moves to $48,500.
It’s very important to watch this so you don’t risk hitting your loss limit.
Requesting a Payout After Reaching the Profit Buffer
Once you reach the profit buffer, your loss limit becomes fixed.
This means it no longer moves with your balance.
Example:
If you have a $50,000 plan, your fixed loss limit is $50,375 once the buffer is reached.
If your balance grows to $55,000, the most you can request is the amount that would bring you down to your fixed loss limit:
$55,000 - $50,375 = $4,625.
If you request the full $4,625, your account will close as this is your entire balance.
What is the most I can get paid out?
You can request all of your profits as long as you meet the payout rules. There are no payout caps, and all payouts are 100% yours. However, if you request your entire account balance, your account will close since it will reach the loss limit.
Why did my account close after my payout?
If you request your full balance, your account balance goes down to your loss limit. When this happens, your account is automatically closed because there is no remaining balance left to trade with.