Drawdown and loss limits · Pro
High-water mark
Also searched as: HWM, peak balance
What does High-water mark mean?
A high-water mark is the highest account value recognized by a particular calculation. Trailing drawdown rules may use an intraday equity peak or a highest end-of-day balance.
Example
An intraday high of $26,000 and a closing balance of $25,400 produce different reference values.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Determine which value the provider recognizes before calculating the loss floor.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.