What is a High Watermark?

The High Watermark is based on the highest value that a client account has achieved. i.e. Performance Fees will only apply if the copier continues to increase their profits. The 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.