Blow Up

Blow up means hitting the maximum drawdown or daily loss limit on a funded account, resulting in termination. The term comes from the trading-floor lineage of "blowing up" an account through a single oversized loss or a series of losses.

Blow-up causes typically cluster around: oversizing after losses (revenge trading), holding through news events without protection, ignoring the daily-loss limit as a hard stop, and trading instruments outside normal expertise.