What is Daily Drawdown and how is it calculated?

Daily drawdown at Mubite is calculated from your equity, not just your account balance. Understanding the difference is essential to staying within the rules throughout your program.

What is Equity?

Equity is the real-time value of your trading account. It includes your balance plus any unrealized profits or losses from open positions.

Equity = Balance + Floating Profits - Floating Losses

For example, if your balance is $1,200 with one open trade at +$15 and another at -$10, your equity is $1,205.

How the Daily Drawdown Limit Works

The daily drawdown limit is 3% for Nitro, 4% for One-Step and 5% for Two-Step. It is calculated from your equity at midnight UTC, when the trading day begins. If your equity falls below the applicable threshold at any point during the day, including because of floating losses on open positions, the program is considered failed.

For example, with equity of $10,000 at midnight UTC:

• Nitro has a $300 daily limit and a breach level of $9,700.

• One-Step has a $400 daily limit and a breach level of $9,600.

• Two-Step has a $500 daily limit and a breach level of $9,500.

Instant Funding does not have a separate daily drawdown limit; it uses Smart Drawdown instead.

The daily drawdown resets every day at midnight UTC based on your equity at that time.

For a full overview of all rules, visit the Challenge Rules page. To compare limits across programs, see challenge pricing.