EOP Trailing Threshold is a term used to describe how an account’s minimum balance changes due to profit and loss. EOP Trailing threshold will only follow your account after a position is closed, intra-day, up until max profit is reached. Because of this, all trades closed for a profit above your previous account balance high will be reflected in your minimum account balance.
EOP Trailing threshold example:
EOP trailing only adjust after a position is closed and if the position was more profitable than the last account balance.
Here is an example of how a EOP trailing works:
Your $50k account has a EOP trailing threshold of $47,500. You make your first trade and close it at a high of $700 profit. Your account balance is now $50,700 and the trailing threshold is at $48,200. Your next trade is placed and you see a $200 profit but you don’t close the trade yet. You wait a bit longer and end up closing it for a $100 loss. Your account balance will be $50,700 – $100 = $50,600 while your trailing threshold still be at $48,200. If your account balance ends up dropping below the trailing threshold, your account will auto-liquidate and go into Admin status. You will not be able to place any more trades.
