Definition
Static drawdown
A fixed loss floor measured from the starting balance — profit does not move it.
Static is the most forgiving drawdown type: on a $100,000 account with 10% static drawdown the floor is $90,000 forever, no matter how high equity climbs.
Firms offering static drawdown often pair it with tighter targets or higher fees — the risk terms across a program tend to balance out.
Related terms
General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.