Prop Firm Glossary
Understand the most important prop firm terms, rules, and account features before choosing a funded trading challenge. Learn what funding caps, drawdowns, payouts, evaluations, and retries mean.
Funding Cap refers to the maximum amount of capital a trader can manage with a prop firm at any given time. This limit applies across....
Free Retry is a feature offered by some prop firms that allows traders to restart an evaluation or challenge without paying an additional fee. This....
Evaluation Account is a simulated trading account used by prop firms to assess a trader’s skill, discipline, and risk management before granting access to a....
Equity represents the real time value of a trading account, including both the account balance and any unrealized profit or loss from open positions. It....
Equity Based Drawdown is a drawdown rule that measures losses using account equity rather than balance. Since equity includes unrealized profit and loss from open....
EOD Drawdown, short for End of Day Drawdown, is a drawdown rule that is calculated based on the account balance at the end of the....