Prop firm glossary
The rules that decide whether you pass, in plain words, with the firms that use each one.
EOD trailing drawdown
A loss floor that follows your best end-of-day balance, then stops at your starting balance.
Intraday trailing drawdown
A loss floor that follows your highest balance during the day, open profit included.
Static drawdown
A loss floor that never moves: a fixed amount below the starting balance.
Daily loss limit
The most you can lose in one trading day before the account fails or pauses.
Consistency rule
A cap on how much of your total profit can come from your best day.
Activation fee
A one-time charge some firms add when you pass and move to the funded account.
Profit target
The profit you need to reach to pass a phase of the evaluation.
Minimum trading days
The number of days you must trade before you can pass a phase or ask for a payout.
Profit split
The share of funded-account profit you keep.
2-step challenge
An evaluation with two phases, each with its own profit target.