# What is Static drawdown?

> A static drawdown is a maximum loss limit fixed at a set level below the starting balance that never moves, however much profit the account makes.

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

In a prop firm, a static drawdown is the simplest form of maximum loss limit. If the starting balance is $100,000 and the limit is 10%, the account breaches at $90,000 equity, today and for the life of the account.

Static limits are generous to traders who build profit early, because every dollar of profit widens the room above the floor. They are common in two-step forex evaluations, where the second phase acts as the extra filter instead.

Some firms combine a static maximum loss with a daily loss limit measured from a moving daily reference, which traders sometimes mistake for a trailing drawdown. Name each rule separately.

## Why it matters

Static drawdowns are easy to explain and easy to market, which reduces support load, but they leave more open profit at risk in the funded stage. If you offer them, say so prominently because traders search for it. If you offer both static and trailing programs, compare them side by side on the pricing table.