Glossary

Prop firm terms, explained

What the columns and rules on this site mean, in plain English. Rules vary by firm and model, so read the firm's own terms before you buy.

Evaluation: A paid test on a simulated account, also called a challenge. Reach the profit target without breaking the drawdown or other rules and the firm gives you a funded account.
Steps: How many evaluation phases you must pass. A 1-step has one target; 2-step and 3-step evaluations add phases, usually with a lower target each time. Instant accounts skip the evaluation and start funded, usually at a higher price and with tighter rules.
Profit target: The profit you must make to pass a phase, as a percentage of the starting balance. 8/5% means 8% in phase one and 5% in phase two.
Profit split: The share of funded-account profits you keep. With an 80% split, $1,000 of profit pays you $800.
Max drawdown: How far the account can fall before it fails, as a percentage of the starting balance. A 6% max drawdown on a $50K account is $3,000. How the limit is measured depends on the drawdown type.
Drawdown type: Static: the limit is fixed at the starting balance minus the drawdown and never moves. Trailing balance and trailing equity: the limit rises with your highest closed balance or highest equity, so profits raise the floor. EOD trailing: the limit only moves at the end of the day, based on the closing balance, so swings during the day don't move it. Intraday trailing: the limit follows your highest open equity in real time, including unrealized profit, which makes it the strictest. Many firms stop trailing once the limit reaches the starting balance.
Daily loss limit: The most you can lose in a single day, usually a percentage of the starting balance or of the day's opening balance. At most firms breaking it fails the account; a few only stop trading until the next day. None means there is no daily limit.
Consistency rule: A cap on how much of your total profit can come from one day. With a 40% rule, your best day can be at most 40% of all profit. eval means it applies during the evaluation, funded after you are funded.
Minimum trading days: The fewest days you must place trades before you can pass a phase or request a payout.
Activation fee: A one-time fee some firms charge after you pass, before the funded account goes live.
To funded: The least you pay to reach a funded account: the evaluation fee (or the first month of a monthly plan) plus any activation fee. Resets, add-ons and data fees are not included.
One-time or monthly: One-time evaluations charge once. Monthly plans bill every month until you pass, so a slow pass costs more than the price shown.
List price and discount: The list price is the firm's standard fee. When a firm runs a discount, the lower price is shown first and the list price is struck through. Discounts change often, so confirm the final price on the firm's site.
Payout: How often you can withdraw profits from a funded account: daily, weekly, every 14 days, or on demand once conditions are met. The Payout column shows the wait in days.
Reset: A fresh attempt at the same evaluation after you fail it, often cheaper than buying a new account. Reset prices are not included in the prices here.
Platform: The trading software you use, such as MT5, cTrader, TradingView, NinjaTrader or Tradovate. See prop firms by platform.