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Every prop firm rule, explained

Most failed challenges die on a rule the trader never read, not on bad trading. This is the full dictionary of prop firm rules: what each one means, the real 2026 numbers, and the question to ask before you pay.

Profit target

The amount you must make to pass, set per phase.

A target is meaningless on its own. Always read it against the drawdown: 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%
Our DD:PT column on /programs does the target-vs-room division for every challenge

The same 6% target feels different depending on the room you get.

Maximum drawdown, and its three types

Your total loss limit. The single most important line on any rule sheet.

Same account size, same price, different drawdown type = a completely different product.

Static: fixed floor below starting balance, never moves. Friendliest; about half of all challenges
EOD trailing: floor moves up once per day at the close. Open-trade swings during the day don't drag it
Intraday trailing: floor follows your live equity peak, including open profit. Harshest type
Many trailing models lock once the floor reaches your starting balance, turning static from there

Static floor never moves. A trailing floor climbs with your 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, removing the one-bad-day failure mode
Ask each firm: does it count closed losses only, or floating losses too? It changes how much heat one open trade may take

Consistency rules

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

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

Example, 50% cap: target $3,000, one day makes $2,400. You wait 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: contracts on futures accounts, lots on CFD.

The cap sets how fast you can even theoretically reach the target. 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 your 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. 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 you must trade.

None of these rules make you money; 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. Check

Payout cycles, minimums and caps

When you can withdraw, how much, and how often. The widest spread in the industry.

The payout section is where funded traders get surprised. Read it 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 fine print that voids profits

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

Profits can be deducted after the fact for breaking rules you 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 get deducted at some futures firms
Copying between your own accounts is usually allowed; copying other people usually is not
Prohibited styles: tick scalping, latency arbitrage and similar

Profit split

Your share of funded profits.

A 100% split you cannot withdraw 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: Goat Funded Futures' EOD 50K challenge, in one line per rule.

Scan order: target vs room, drawdown type, consistency, payout terms, conduct rules. In that order.

$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

Theory is cheap - check it against real program rules.

Open the full rulebook for all 31 firms

Educational content, not financial advice. Formulas assume independent trades and honest backtests; real trading is streakier. Never risk money you can't afford to lose.