Drawdown is the decline from a defined reference—such as starting balance, end-of-day high, or intraday equity peak—to current balance or equity.
| Static | Fixed threshold |
|---|---|
| EOD trailing | Updates at session close |
| Intraday trailing | Can update in real time |
How it works
Current drawdown equals reference value minus current value; remaining capacity is current value minus the violation threshold.
- Define the contract and expiration month
- Convert the price move into points and ticks
- Multiply by the contract's verified point or tick value
- Account for fees, liquidity, and risk limits
Worked example
The reference method changes the answer. A two-contract position moving 10 ticks changes by 20 total contract-ticks. The dollar result equals those contract-ticks multiplied by the product's tick value.
Risk and common mistakes
Using balance when the rule uses equity can materially understate risk.
- Confusing margin with maximum possible loss
- Using the wrong micro or E-mini multiplier
- Ignoring expiration, maintenance breaks, or economic events
- Sizing from desired profit instead of predefined risk
Use the related calculator
Model the contract values and risk with your own inputs before planning a simulated trade.
Open calculator →Frequently asked questions
What is the most important point about trading drawdown explained?+
Drawdown is the decline from a defined reference—such as starting balance, end-of-day high, or intraday equity peak—to current balance or equity.
Is this information personalized financial advice?+
No. ORIVECT Education provides general educational information. Contract selection, leverage, and risk decisions require your own judgment and current official documentation.
Where can I verify the current contract specification?+
Use the official exchange source linked from the relevant ORIVECT market reference page. Trading hours, margin, and holiday schedules can change.