Learn prop trading · lesson

Every prop firm rule, explained

Most failed challenges end on a rule the trader never read. This dictionary explains each rule, with 2026 numbers and the question to ask before paying.

Profit target

The amount a trader must make to pass, set per phase.

A target means little on its own. Read against the drawdown, a 6% target on 3% of room is a much harder trade than 8% on 10%.

Typical 2-step: 8-10% phase one, 5% phase two
Typical 1-step: 6-12%
The PT:DD column on /programs does the target-vs-room division for every challenge

The same 6% target feels different depending on the room the account gives.

Maximum drawdown, and its three types

The total loss limit, and the most important line on any rule sheet.

The same account size and price with a different drawdown type is a different product.

Static: a fixed floor below the starting balance that never moves. The friendliest type; about half of all challenges
EOD trailing: the floor moves up once per day at the close. Open-trade swings during the day do not drag it
Intraday trailing: the floor follows the live equity peak, including open profit. The harshest type
Many trailing models lock once the floor reaches the starting balance, and turn static from there

A static floor never moves. A trailing floor climbs with the equity peaks, then locks at the starting balance.

Daily loss limit

A second, smaller limit that resets each day, usually 2-5% of the account.

One bad session can end an account that still has plenty of total drawdown left.

About 1 in 8 challenges run no daily limit at all, which removes the one-bad-day failure mode
The question for each firm is whether it counts closed losses only or floating losses too. The answer changes how much heat one open trade may take

Consistency rules

A cap on how much of the total profit may come from the best day, commonly 30-50%.

One outsized day can block the pass until smaller days dilute it below the cap.

Example with a 50% cap: the target is $3,000 and one day makes $2,400. The trader waits until other days bring the total to $4,800+
Half of all challenges now run no consistency rule at all
Some firms tighten it when funded: Goat Funded Futures runs 50% in evaluation, 30% funded

With a 50% cap, the big Tuesday blocks the pass until smaller days dilute it.

Contract limits and scaling plans

Position-size caps, counted in contracts on futures accounts and lots on CFD accounts.

The cap sets how fast a trader can reach the target even in theory. Cheap accounts with tight caps are slower money than they look.

Typical 50K futures account: 5 minis or 50 micros
Some firms fix the cap for the account's life; others scale it with the balance

Fees beyond the sticker

The challenge fee is often the first fee, and sometimes the smallest.

A $69 challenge with a $130 activation is a $199 product. Traders should price the whole pipeline.

Activation fee: one-time charge when the funded account starts, $0 to $149+
Reset fee: restart a failed evaluation for less than a fresh purchase
Some futures firms add monthly data or platform fees

Minimum days and time rules

Rules about when and how often a trader must trade.

None of these rules make money, and all of them can quietly end an account.

Minimum trading days: often 3-5, sometimes with a per-day floor such as 0.5% profit
Inactivity rules: no trade for 7-30 days can close the account
Most evaluations no longer expire, but a few still carry time limits, so traders should check

Payout cycles, minimums and caps

When a funded trader can withdraw, how much, and how often. This is the widest spread in the industry.

The payout section is where funded traders get surprised. It should be read before the challenge, not after.

Cycles range from daily payouts to fixed monthly request windows on set dates
Common gates: minimum winning days first, minimum withdrawal (e.g. $500), first-payout caps regardless of profit

Conduct rules

The rules firms enforce at the payout desk. Trader complaints cluster here.

Profits can be deducted after the fact for breaking rules the trader never read.

Overnight and weekend holding bans; news-trading restrictions around big releases
Minimum hold times: profits from trades closed within e.g. 2 minutes are deducted at some futures firms
Copying between a trader's own accounts is usually allowed; copying other people usually is not
Prohibited styles: tick scalping, latency arbitrage and similar

Profit split

The trader's share of funded profits.

A 100% split that cannot be withdrawn is worth less than an 80% one paid on schedule.

90%+ splits are now standard at almost two thirds of programs; about a quarter offer a 100% tier
Weigh split, payout cycle and the firm's payout track record together, never the split alone

Read any rule sheet in 60 seconds

A worked example uses Goat Funded Futures' EOD 50K challenge, with one line per rule.

The scan order is target against room, then drawdown type, consistency, payout terms and conduct rules.

$69 fee, $0 activation | 6% target ($3,000)
$2,000 EOD trailing drawdown, locks at starting balance | no daily limit in evaluation
50% consistency | 5 mini contracts
Payouts tied to winning days, $500 minimum withdrawal

The next step is to check the theory against real program rules.

Open the full rulebook for all 31 firms

This is educational content, not financial advice. The formulas assume independent trades and accurate backtests, and real trading is streakier. Traders should never risk money they cannot afford to lose.