How does a prop firm challenge work?
What rules does a challenge have? Nearly always three: a profit target, a daily loss limit and a maximum loss. What does each mean?
What are the three rules?
Profit target: how much you must make to pass a phase, for example 8% or 10%.Daily loss limit: the most you can lose in a day, for example 4% or 5%.Maximum loss: how far the account can fall in total, for example 8% or 10%. Hit either limit and the challenge ends.How many phases are there?
One, two or three. On a 2-Step, phase one usually asks for 8–10% and phase two for 5%. After the last phase you receive the funded account.
Is there a way to skip the test? Yes, with instant funding.
Are there minimum days or deadlines?
Some firms require a minimum number of trading days, such as 3 or 4. Deadlines have nearly disappeared, but some firms close accounts with no trades for 30 days.
What happens after you pass?
The firm reviews your trades and asks for KYC, usually your KTP or passport plus proof of address. Then you get the funded account, with the same loss rules but no target, and profits are split at the agreed rate.
Got questions?
How long does a challenge take?
It's up to you. With no deadline, most traders take between two weeks and two months.
What if I fail?
The fee is lost. Some firms offer a discount or a free retry.