Guides, FAQ & Glossary
Everything you need to know about futures prop firms — step-by-step guides, the most common questions and the technical terms.
Guides
- What is a futures prop firm? How it works, explained from zero
- How to pass a futures prop firm challenge: risk rules and common mistakes
- Static vs EOD vs intraday trailing drawdown, with numbers
- The prop firm consistency rule explained, with the math
- Activation fee: when the no-fee plan is really cheaper
- Monthly subscription or one-time fee: which costs less?
- How prop firm payouts work: buffer, minimum days, caps and splits
- Bots and prop firms: what to check before you automate
- Instant funding (straight to funded): pros and cons
- How to read our scores
- Prop firm payouts and taxes: the general picture
Frequently Asked Questions
Glossary
Profit Target
The percentage profit goal you must reach to pass the evaluation. E.g.: 6% on a $50K account = $3,000 net profit.
Max Drawdown
The maximum allowed loss relative to your starting balance (or highest balance reached, for trailing). Exceeding it = account closed.
Trailing Drawdown
A type of drawdown that moves upward with your profits. Can be EOD (updates at end of day) or intraday (updates in real time).
Static Drawdown
Fixed drawdown: the stop-out level never changes, regardless of profits reached. More forgiving than trailing.
Daily Loss Limit
The maximum loss allowed in a single trading day. Not all firms enforce it — where absent, only the max drawdown applies.
Buffer
The profit level at which the trailing drawdown locks at your starting balance. Once reached, the floor stops rising with you.
Consistency Rule
A rule that limits how much a single day can contribute to total profit (e.g. max 30-40%). Rewards steady performance, penalizes one-off windfalls.
Profit Split
The percentage of profits you keep. E.g.: 80% split on $10K profit = $8K for you, $2K for the firm.
Scaling Plan
A growth plan that increases your account capital (and often the profit split) if you maintain good performance over time.
Activation Fee
An additional cost some firms charge to activate your funded account after passing the evaluation. Not all firms require it.
Reset Fee
The cost to restart the evaluation from scratch after failing it. Usually lower than the original evaluation price.
Evaluation / Challenge
The trial period where you prove your skills by following the firm's rules. Can be one or more phases (e.g. Phase 1 + Phase 2).
Funded Account
The account you receive after passing the evaluation. You trade with the firm's capital and withdraw your share of the profits.
Straight to Funded
A program with no evaluation: you start directly with a funded account. Usually has more restrictive rules or a lower initial profit split.
EOD (End of Day)
Refers to trailing drawdown: it updates only at the close of the trading day, not in real time. More forgiving than intraday.
Intraday Trailing
The trailing drawdown updates tick by tick in real time. If your account hits a peak during the day, the floor rises immediately.
News Trading
Trading during or around major economic data releases (NFP, CPI, FOMC, etc.). Some firms prohibit it due to high volatility.
Payout
A profit withdrawal from your funded account. Each firm has different frequencies (daily, weekly) and methods (bank wire, crypto).
Min Payout Days
The minimum number of profitable trading days required before you can request a payout. E.g.: 5 days = at least 5 sessions in profit.
Max Accounts
The maximum number of funded accounts you can hold simultaneously with the same firm.
Billing Type
How you pay for the evaluation: 'one-time' (single payment) or 'monthly' (recurring subscription). Monthly costs less upfront but more over time.