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2. Another thing is the drawdown on myfxbook is from the total balance of deposit and profits, eg. we make profits $15,000, and the DD is 40%, then it's $9,000, but still it's from the profits. Your initial deposit never had a drawdown. 25% is the maximum DD on your initial deposit, but usually no more than 10-15%. DD is not that simple and straitforward. There are a few kinds of DD (on deposit only, called "Absolute Drawdown" or on deposit and profits together called "Relative Drawdown"), and also money can be withdrawn, deposited again, etc. The drawdown on myfxbook is a "Relative Drawdown", but 25% we talk about on our website is an "Absolute Drawdown". |
HIGH RISK WARNING
Trading in THE FOREIGN EXCHANGE MARKETS on margin carries a high level of risk, and may not be suitable for all individuals. The high degree of leverage offered in the Forex markets can work against you as well as for you. Before deciding to trade in the foreign exchange markets you should carefully consider your investment objectives, your level of experience, and your risk appetite. The possibility exists that you could sustain a loss of some or all of your equity and therefore you should not invest money that you cannot afford to lose. Only true discretionary cash should be used in trading. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.