# What is End-of-day drawdown?

> An end-of-day drawdown is a trailing maximum loss limit that updates only at the daily close, so intraday open profit does not raise the breach level.

- Source: https://pipvalley.com/glossary/end-of-day-drawdown
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

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.

## Why it matters

EOD drawdown is a product differentiator traders actively search for, especially in futures. If you offer it, name it exactly, state the close time the floor updates at, and give a worked example next to the intraday version so traders can see what they are paying for.