Futures Prop Firm Glossary
All the jargon — explained in plain English.
Prop Firm
A company that funds traders with its own money
Evaluation / Challenge
A test you must pass to get funded
Profit Target
How much you need to make to pass
Max Drawdown
The maximum you are allowed to lose
EOD Drawdown
Drawdown that only updates once per day at close
Intraday Drawdown
Drawdown that updates in real time as you trade
Trailing Drawdown
A drawdown limit that moves up as you make profit
Daily Loss Limit
The maximum you can lose in a single day
Consistency Rule
Stops you from making all your profit in one lucky day
Profit Split
How profits are divided between you and the firm
Sim Funded / Simulated Account
A funded account that trades in simulation, not real markets
Live Funded Account
A real account trading actual money in live markets
Performance Account (PA)
The funded account you get after passing the evaluation
Safety Net / Buffer
A profit cushion required before you can withdraw
Contract Limits
The maximum number of contracts you can trade at once
Mini vs Micro Contracts
Micro contracts are 1/10th the size of mini contracts
News Trading
Trading around major economic announcements
Scaling Plan
A path to grow your account size over time