# Margin and Drawdown per trade

How is drawdown per trade calculated on accounts that use margin (ie forex/futures)?

Is it the percent of margin used of the total account value? Or is it the percent of total loss?

If I see a trade having 96% DD, does this mean that the trade used 96% of the margin or that the loss is 96% of the account value?

for example: Lets say you have an account value of \$1000, and entered a NZD/USD a trade that used \$250 margin.
The trade had then went to \$300 dollar loss and used all \$1000 margin (and therefore was automatically closed at IB). However the trade then lost more at \$500 with \$2000 margin used.

In this example - is the DD = \$1000 margin / \$1000 account value = 100% (but only \$300 loss) OR is it ( \$500 loss) / (\$1000 account value) = \$50%. (even though youd be out of the trade beforehand due to margin call).

I tried searching the forums for an answer but had no luck. Thanks.

That would be great to know. I will be waitinfg for an answer as well. Thanks
Lejeune bauvil for Wugot strategy.