Every term you'll meet while comparing prop firms — drawdown rules, profit splits, activation fees and payouts — explained in plain English, no marketing spin.
Tap any term for the full definition with worked examples and the related rules you need to read alongside it.
An account reset is a paid option that restores a breached or failed evaluation account back to its starting balance so you can try again without buying a brand-new challenge.
Read definitionAn activation fee is a one-time charge that some prop firms require you to pay after passing the evaluation, before they hand over your funded account.
Read definitionA consistency rule caps how much of your total profit can come from a single trading day, forcing your gains to be spread out rather than earned in one lucky session.
Read definitionA daily drawdown is the maximum amount you are allowed to lose in a single trading day before the firm breaches your account.
Read definitionAn evaluation, or challenge, is the paid test phase where a trader must hit a profit target without breaking the drawdown rules to qualify for a funded account.
Read definitionA funded account is the trading account a prop firm gives you after you pass the evaluation, where your profits become eligible for real payouts.
Read definitionMaximum drawdown is the total amount your account can lose over its entire life before it is permanently breached.
Read definitionMicro futures are smaller-sized versions of standard futures contracts, typically one-tenth the size, letting traders manage risk with far less capital per tick.
Read definitionA payout is a withdrawal of your share of the profits from a funded account, paid out by the prop firm under the agreed profit split.
Read definitionA profit split is the percentage of trading profits a funded trader keeps, with the prop firm retaining the rest.
Read definitionA profit target is the amount of profit a trader must reach during an evaluation to pass and qualify for a funded account.
Read definitionA scaling plan is a set of rules that gradually increases your position size or account capital as you prove consistent profitability.
Read definitionA sim-funded account is a funded account where trades are executed in a simulated environment, with the prop firm paying real money on profits out of its own pocket.
Read definitionA trailing drawdown is a maximum-loss limit that rises with your account's peak balance, locking in profits but never moving back down once it has climbed.
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