End-of-day drawdown

What it means

In a prop firm, an end-of-day (EOD) drawdown recalculates the breach level once per day, using the closing balance or equity at the session end. During the day the floor stays where it was, so a trade that runs up and gives the profit back intraday does not tighten the limit.

EOD trailing is common at futures prop firms as an alternative to intraday trailing, often at a different price. The breach is still checked in real time against the current floor; only the floor's movement is end of day.

The rule depends on a precise definition of the day's close, which for futures is the exchange session rather than midnight.