Prop Firm Glossary
Every rule and bit of jargon we cover, in plain English. Click any term for the full explainer.
C
- Consistency Rule
consistency · 30% rule · 40% rule · best-day rule
A consistency rule caps how much of your total profit can come from a single trading day, typically thirty to fifty perc…
E
- EA Allowance
EA rules · bot rules · automated trading policy · copy trading rules
EA allowance describes which expert advisors, automated bots, or copy-trading tools a prop firm permits on funded accoun…
M
- Minimum Trading Days
min trading days · MTD · active trading days
A minimum trading days rule requires you to place at least one qualifying trade on a set number of separate days before…
N
- News Trading Ban
news ban · high-impact news restriction · no news trading
A news trading ban restricts opening or closing positions around high-impact economic releases such as nonfarm payrolls,…
P
- Profit Target
profit goal · challenge target · evaluation target
A profit target is the percentage gain you must reach in an evaluation phase to advance or get funded. Most one-step cha…
S
- Static Drawdown
static DD · balance-based drawdown · fixed drawdown
A static drawdown is a fixed maximum loss measured from your starting balance, not from any later high. Unlike a trailin…
T
- Trailing Drawdown
trailing DD · trailing max loss · moving drawdown
A trailing drawdown is a moving loss limit that follows your highest balance or equity peak upward but never trails back…
W
- Weekend Hold
weekend rule · weekend exposure · no weekend hold
A weekend hold rule controls whether traders can keep positions open through Friday close into Monday open. Many prop fi…