What does it mean? A prop firm glossary
Not sure what a term means? Here are the words you'll see most often, in plain language.
Challenge terms
Challenge / evaluation: the paid test that leads to funding.Phase / step: one stage of the challenge, each with its own target.Profit target: the percentage gain you need to pass a phase.Minimum trading days: the fewest days you must trade before passing.Risk terms
Daily loss limit: the most you can lose in one day.Maximum loss / drawdown: the most the account can fall overall.Static drawdown: a limit fixed from the starting balance.Trailing drawdown: a limit that rises with your highest balance.Consistency rule: a cap on one day's share of total profit.Payout terms
Profit split: the share of profit you keep.Scaling plan: a route to a bigger account or higher split.Refundable fee: a fee returned with a payout.KYC: identity checks before funding or payout.Pay after pass: a small fee to start, the rest only if you pass.Got questions?
What does funded mean?
You've passed the challenge and now trade the firm's account for a share of the profit.
What is a hard breach?
A rule break that closes the account immediately, such as hitting the maximum loss.