Payout Locker

Once a trader has achieved a profit target of 10% and been approved to scale up, a payout may be requested after the first 10 days of trading the new scaled account.

If the trader chooses to make a withdrawal, the default drawdown limit of 8% will be automatically locked into the starting balance for the remaining duration of trading activity on that new level.

It will remain fixed at the starting balance until the trader reaches the next 10% profit target.

After that, if the trader is approved for scaling up again, the static drawdown will be reset to the default 8% limit for the next level.

It is important to understand that the static drawdown limit is only locked into the starting balance after the FIRST payout request. Any subsequent withdrawals do not affect the drawdown limit further.

Why is this needed?

Once an initial payout has been made, both the trader and FTUK have benefited financially from the profit split on the account. At this point both parties are able to operate from a risk-free position. This removes the need for further risk assessments and trading performance reviews.

Examples

Below are 3 examples of how the Payout Locker will function on a funded account given various trading scenarios.

Trading without making an initial payout request

If a trader is scaled up to a new level and does NOT make a payout request, the drawdown limit on the account remains static throughout the lifecycle of the account.

Trading after making an initial payout request

Once a trader has requested the 1st payout, the drawdown is locked to the starting balance for the remaining lifecycle of the account.



REMEMBER: After scaling up to a new level, a trader must complete 10 full trading days before requesting a payout

Trading after making multiple withdrawals

The static drawdown remains locked to the starting balance after the initial payout request. Any further payouts do not affect the drawdown limit further.



TIP: It’s important to remember that withdrawing funds from the account does NOT affect your ability to hit the next profit target.

REMEMBER: The drawdown limit is not moved UNTIL the trader requests an initial payout on the new level.

Payout Locker And Level 1 Profits On Instant Funded Accounts

There are 2 options for the trader to consider when working with an Instant Funded account.

In this example let's assume the trader has elected to purchase a $14,000 Instant Funded account, starting at Level 1 with 1/4 of the account: $3,500.

After hitting the Level 1 profit target of $3,850 they may either withdraw $350 profit, scaling up to Level 2 with a starting balance of $14,000, or they can choose to carry their Level 1 profits over into Level 2, creating a higher starting balance of $14,350. This allows the trader to benefit from an expanded static drawdown limit of 10.24%.

The trader would need to understand that from this point the Payout Locker would lock into the original starting balance of $14,000 should an initial withdrawal be made.

Option 1

In the example below a payout request is made after hitting the profit target on Level 1. This means the trader begins trading Level 2 with a starting balance of 14,000. Should the trader request a withdrawal from here before hitting the target the Payout locker would be fixed to the starting balance of $14,000.

Option 2

In the second example below the trader has decided to carry the Level 1 profits over into Level 2. This enables the trader to benefit from an extra drawdown limit of 2.24% until the profit target is achieved. However, should the trader decided to request a payout after 10 trading days, the Payout Locker would be fixed at the original starting balance of $14,000.






You can find out more about how payouts work with FTUK here: Payouts & Billing

Updated on: 27/05/2024