What is a High Watermark (HWM)?

The High Watermark (HWM) is the highest value the gains of a Trading Account have ever reached. The HWM is the benchmark for applying Performance Fees. i.e. Performance Fees will only apply if the Copier continues to increase their profits. The High Watermark is reset each time the Copier increases their profits; the gain minus the Performance Fee will become the new benchmark. If a Copier suffers losses, then the watermark will remain the same and Performance Fees will apply again when they’ve recovered those losses and made further profit.