Futures Prop Firm Glossary
Every term we use across the site, defined.
- Activation fee
- A one-time fee charged when you transition from the evaluation phase to a funded account. Typically $80–$150. Covers the data feed, platform licensing, and the firm's onboarding cost. Some firms waive it as a promo; a few firms don't charge it at all.
- Affiliate code(also: Promo code, Discount code)
- A short string entered at checkout to apply a discount. Sometimes also tracks the affiliate who referred you so they earn commission on your purchase.
- Buy-in(also: Evaluation fee)
- The cost of buying into an evaluation. Either one-time (you own the eval until you pass or bust) or monthly subscription.
- Challenge(also: Evaluation)
- An evaluation phase where the trader proves their skill on a simulated account before getting funded. The terms 'challenge' and 'evaluation' are interchangeable across firms.
- Combine
- Topstep's term for their evaluation phase. Synonymous with challenge / evaluation at other firms.
- Consistency rule
- A rule capping how much of your total profit can come from a single day — typically 30–50%. If 60% of your $5K profit comes from one big day, you violate the rule. Designed to prevent traders from passing on a single lucky trade. Some firms have no consistency rule.
- Daily loss limit(also: Max daily loss)
- A per-day cap on losses, usually 4–5% of account size. Hitting it ends trading for the day on the eval; hitting it on a funded account can permanently blow the account. Distinct from cumulative drawdown.
- Data feed
- The market-data provider the firm routes through — Rithmic, CQG, Tradovate, dxFeed, ProjectX, etc. Affects which trading platform you can use and what you'll see for fills. Mismatched feed and platform = no fills.
- Drawdown
- The maximum your account can fall before it's considered busted. Calculated relative to a starting balance, peak balance, or end-of-day balance — see Static, Trailing, and EOD drawdown.
- End-of-day (EOD) drawdown
- A drawdown that only updates based on your end-of-day balance, ignoring intraday equity dips. The more forgiving variety. If you close green, an intraday drawdown didn't 'happen' for accounting purposes.
- Evaluation(also: Challenge, Combine)
- The phase before you're funded. A simulated account with a profit target and rules. Pass it, you progress to funded. Bust it, you can usually reset for a smaller fee.
- Eval fee(also: Buy-in, Evaluation cost)
- The cost of buying an evaluation. Either one-time or monthly. Typical range is $80–$700 depending on account size and firm.
- Funded account
- The account you trade after passing the evaluation. Most firms keep this simulated (you trade against the firm's risk pool, not real customer money) — payouts are real, but the account is sim. A few firms transition to live capital after a payout milestone.
- Funding fee(also: Activation fee)
- Another name for activation fee — paid when transitioning from eval to funded.
- Instant funding(also: Straight to Funded, Direct funding)
- Skips the evaluation phase entirely. You pay more upfront and start trading a funded account immediately, typically with stricter rules than a post-eval funded account.
- Intraday trailing drawdown
- A drawdown that updates with every tick — a deep dip mid-day can bust the account even if you close green. The strictest of the trailing-drawdown variants. Apex's traditional rule.
- Lockout
- Period during which you can't place new orders — usually after a daily loss limit hit or an account violation. Can be the rest of the trading day, or a longer cooldown.
- One-step
- An evaluation with a single profit target — pass it, go funded. Simpler than two-step / multi-stage models.
- One-time payment (OTP)
- Eval pricing model where you pay once and own the eval until you pass or bust — no monthly recurring fee. Higher upfront cost but cheaper if you take a while.
- Payout
- Money the firm wires to you from your funded-account profits. Usually requires a minimum profit, minimum trading days, and adherence to all consistency / payout rules.
- Payout speed
- How long between requesting a payout and receiving funds. Best firms: 24–48 hours. Average: 2–5 business days. Some firms have monthly payout windows.
- Profit split
- The percentage of profits the trader keeps. Industry standard is 80–100% to the trader. Sometimes tiered — e.g., 100% of the first $10K, then 90%. Other firms go flat from the start.
- Profit target
- The dollar amount of profit needed during evaluation to qualify for funding. Typically 6–10% of account size — a $50K eval might require $3,000.
- Reset
- Restarting an evaluation after busting. Most firms charge a fee ($50–$100) and let you reset same-day. Some firms include free resets with the original purchase.
- Sage rating
- Prop Firm Sage's editorial score for a firm, normalized to 0–5. Composite of rule clarity, drawdown design, payout speed, verified payouts, support, and trader feedback. Independent of affiliate revenue.
- Scaling plan
- Some firms restrict contract size early in the funded phase, then unlock more contracts as you build profit. A trader might start at 5 minis and only unlock the 10-mini cap after $2,500 in profits.
- Static drawdown
- A fixed drawdown line that doesn't move with your account equity. The friendliest drawdown design for volatile strategies. If your eval starts with a $48K floor, that floor stays at $48K regardless of how high the account climbs.
- Stop-out(also: Bust, Account violation)
- Hitting a rule that ends the account permanently. Usually drawdown, sometimes daily loss limit on a funded account.
- Trailing drawdown
- A drawdown that rises with your account peak. If your account grows from $50K to $52K, the drawdown line follows up. Variants: cumulative trailing (only the running peak), end-of-day trailing, and intraday trailing.
- Verified payouts
- Confirmed payments from real traders that we've validated independently — bank statements, wire receipts, screenshots cross-checked against the firm's own records. Distinct from a firm's marketing claim of 'X paid out.'