Prop trading definitions, challenge structures, fees, payout rules, platform conditions, and comparison criteria
Fundora Wiki
Reference library for prop trading definitions, drawdown rules, evaluation formats, payout mechanics, KYC, platform conditions, pricing logic, and neutral comparison criteria.
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Start with the right question
Use these entry points when you need definitions, rule interpretation, cost comparison, or pre-purchase due diligence.
What Is a Prop Firm?
Core explanation of the prop trading model and the difference from a standard brokerage account.
How to Compare Prop Firms Properly
Neutral framework for comparing rule sets, payout conditions, platform access, and operational fit.
One-Step and Two-Step Prop Firm Challenges
Compare one-step and two-step evaluations by risk compression, cost path, and pass difficulty.
Evaluation Fee, Reset Fee, and Refund Models
Understand entry cost, reset economics, refund conditions, and the real cost of reaching payout eligibility.
Wiki library
Structured prop trading reference
Each entry is written as a reference article with definition, practical implications, detailed explanation, and a concise questions-and-answers section.
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Fundamentals
Core definitions and operating concepts used to understand what a prop trading program is and how it is structured.
FundamentalsFundora Wiki
What Is a Prop Firm?
Definition, operating model, evaluation logic, and the practical difference between a prop firm account and a standard retail brokerage account.
Definition and concept5 min1,002 words
FundamentalsFundora Wiki
Simulated Trading
Meaning of simulated trading in prop programs, how it differs from informal demo trading, and why the distinction matters for expectations and risk understanding.
Definition and concept5 min919 words
FundamentalsFundora Wiki
Evaluation Phase and Funded Stage
How evaluation accounts differ from the later funded stage, why both are governed by different incentives, and what traders should verify before assuming that passing a challenge solves everything.
Definition and concept5 min1,011 words
General
GeneralFundora Wiki
What Is Prop Trading?
A clear explanation of proprietary trading, evaluation models and why modern prop firms operate with rule-based simulated trading programs.
GeneralFundora Wiki
Daily Loss Limit
One of the most important prop trading rules. Understand what a daily loss limit is, why it exists and how it changes execution behaviour.
GeneralFundora Wiki
Max Loss vs Trailing Drawdown
These two ideas are often confused. This page separates hard max loss from trailing drawdown and explains why the difference matters when choosing a challenge.
GeneralFundora Wiki
One-Step vs Two-Step vs Instant Funding
A practical comparison of the three common prop structures, including how risk limits, leverage and withdrawal timing usually differ.
Risk and Rule Structure
Rule mechanics that determine how losses, targets, restrictions, and breaches are measured inside a prop program.
Risk and Rule StructureFundora Wiki
Daily Drawdown
Precise meaning of daily drawdown, how firms calculate it, and why misunderstanding the reset logic is one of the fastest ways to fail an evaluation.
Rule interpretation4 min848 words
Risk and Rule StructureFundora Wiki
Maximum Drawdown
What maximum drawdown means in prop programs, the difference from daily drawdown, and why the trailing or static method changes the entire risk profile.
Rule interpretation4 min803 words
Risk and Rule StructureFundora Wiki
Forbidden Trading Practices
Purpose of prohibited-behaviour clauses in prop trading and how traders should interpret them without relying on vague assumptions or loophole thinking.
Rule interpretation4 min737 words
Risk and Rule StructureFundora Wiki
Minimum Trading Days
What minimum trading day rules are designed to do, how they affect strategy selection, and why day-count requirements should be read together with drawdown and consistency logic.
Rule interpretation4 min846 words
Risk and Rule StructureFundora Wiki
Minimum Trading Days
What minimum trading day rules are designed to do, how they affect strategy selection, and why day-count requirements should be read together with drawdown and consistency logic.
Risk and Rule StructureFundora Wiki
Consistency Rule
Meaning of consistency rules, why they exist, and how they can change the way a trader interprets profit distribution, risk concentration, and payout eligibility.
Rule interpretation4 min782 words
Risk and Rule StructureFundora Wiki
Overnight, Weekend, and News Trading Restrictions
Why some programs restrict holding through major events or across session boundaries, and how these rules change strategy compatibility more than many traders initially expect.
Rule interpretation4 min706 words
Risk and Rule StructureFundora Wiki
Static Drawdown and Trailing Drawdown
Definition of static and trailing drawdown, how each model behaves during account growth, and why the distinction changes strategy selection in a prop program.
Rule interpretation5 min1,036 words
Risk and Rule StructureFundora Wiki
Equity-Based and Balance-Based Rule Measurement
How prop firms measure limits on equity or on closed balance, and why that distinction changes open-position risk, floating drawdown, and breach probability.
Rule interpretation4 min814 words
Risk and Rule StructureFundora Wiki
Profit Target
What a profit target means in an evaluation, why the number must be read together with drawdown and time conditions, and how traders should interpret target pressure.
Rule interpretation4 min726 words
Risk and Rule StructureFundora Wiki
News Filters and Event-Risk Rules
How event-risk windows, news-trading rules, and time-based restrictions are defined and why they materially change strategy design in prop trading.
Rule interpretation3 min495 words
Operations and Compliance
Platform, KYC, payout workflow, account controls, monitoring, and administrative conditions that affect program usability.
Operations and ComplianceFundora Wiki
Payouts and Profit Split
How payout eligibility, review cycles, and profit split percentages should be interpreted when judging the real value of a prop trading program.
Operational due diligence4 min795 words
Operations and ComplianceFundora Wiki
KYC in Prop Trading
Purpose of KYC, when it appears in the trader journey, and why document readiness should be treated as part of program planning rather than an afterthought.
Operational due diligence4 min728 words
Operations and ComplianceFundora Wiki
Restricted Jurisdictions
Meaning of restricted jurisdiction clauses, why they exist, and how traders should evaluate geographic eligibility before paying for a program.
Operational due diligence4 min675 words
Operations and ComplianceFundora Wiki
Platform Access and Third-Party Providers
Why many prop brands depend on third-party infrastructure and how that affects login flow, account continuity, platform stability, and support expectations.
Operational due diligence3 min616 words
Operations and ComplianceFundora Wiki
Account Breach, Rule Violations, and Reset Logic
What it means to breach a prop account, how violation categories differ, and why reset offers should be read as operational terms rather than emotional second chances.
Operational due diligence4 min736 words
Operations and ComplianceFundora Wiki
Copy Trading, Device Monitoring, and Multi-Account Controls
Why providers monitor account access, copied execution, and multiple-account behaviour, and how these controls should be understood as integrity rules rather than technical trivia.
Operational due diligence4 min731 words
Operations and ComplianceFundora Wiki
Payout Cycle and Withdrawal Eligibility
How payout windows work, what makes a trader eligible to request a withdrawal, and why payout frequency must be read together with compliance rules and review steps.
Operational due diligence3 min657 words
Operations and ComplianceFundora Wiki
Reset, Retry, and Reattempt Logic
How resets and retries are defined in prop programs, when they are useful, and why traders should distinguish between a controlled restart and repeated low-quality reattempts.
Operational due diligence4 min675 words
Operations and ComplianceFundora Wiki
Inactivity Rules and Dormant Accounts
What inactivity rules mean, why dormant-account policies matter in prop programs, and how low-activity traders should interpret them before purchase.
Operational due diligence3 min613 words
Operations and ComplianceFundora Wiki
Platform Data Feeds, Market Hours, and Instrument Coverage
How platform data feeds, available instruments, session schedules, and contract specifications affect prop trading execution and rule compliance.
Operational due diligence3 min520 words
Operations and ComplianceFundora Wiki
Payout Denial Reasons and Review Checks
Typical reasons payout requests are delayed or denied in prop trading, and how review checks, KYC, rule breaches, and behavioural flags affect approval.
Operational due diligence3 min555 words
Comparison and Due Diligence
Comparison criteria for selecting a challenge or provider, including fees, challenge types, terms, and program fit.
Comparison and Due DiligenceFundora Wiki
How to Compare Prop Firms Properly
A disciplined framework for comparing prop firms through rules, operational clarity, and trader-method fit rather than through headlines and promotional language.
Comparison and purchase research4 min682 words
Comparison and Due DiligenceFundora Wiki
Scaling Plans and Account Growth
How to interpret scaling promises, why account growth should be judged by conditions rather than slogans, and what traders often miss when comparing growth pathways between firms.
Comparison and purchase research4 min725 words
Comparison and Due DiligenceFundora Wiki
One-Step and Two-Step Prop Firm Challenges
Definition of one-step and two-step evaluations, how they alter pass difficulty, risk behaviour, and the true cost of reaching payout eligibility.
Comparison and purchase research5 min903 words
Comparison and Due DiligenceFundora Wiki
Instant Funding in Prop Trading
Meaning of instant funding, how it differs from standard evaluations, and the rule, payout, and risk questions that should be checked before purchase.
Comparison and purchase research3 min654 words
Comparison and Due DiligenceFundora Wiki
Evaluation Fee, Reset Fee, and Refund Models
How evaluation fees, reset pricing, refunds, and account economics interact, and why the cheapest headline fee is often not the lowest real cost.
Comparison and purchase research3 min609 words
Comparison and Due DiligenceFundora Wiki
Coupons, Discount Codes, and Promotional Pricing in Prop Challenges
How discount codes, promotional pricing, and seasonal campaigns should be evaluated without confusing a lower purchase price with a better rule set.
Comparison and purchase research3 min633 words
Comparison and Due DiligenceFundora Wiki
Account Size and Real Risk Capacity
Why nominal account size can be misleading, and how to compare prop accounts by real usable risk budget rather than headline numbers alone.
Comparison and purchase research3 min631 words
Comparison and Due DiligenceFundora Wiki
Prop Firm Terms and Conditions Before Purchase
How to read prop firm terms and conditions before checkout, and which clauses matter most for payouts, breaches, KYC, restricted use, and account control.
Comparison and purchase research3 min537 words
Comparison and Due DiligenceFundora Wiki
Best Prop Firm and Rule Fit
Why the search for the best prop firm should be reframed as a search for rule fit, and how traders can compare firms without relying on generic rankings or slogans.
Comparison and purchase research3 min497 words
Execution and Risk
Execution quality, sizing, correlation, margin, and trade-construction topics that affect day-to-day performance.
Execution and RiskFundora Wiki
Leverage and Margin in Prop Trading
How leverage and margin should be interpreted in a prop environment, why they do not cancel the importance of drawdown, and how misuse of available size leads to preventable breaches.
Execution and risk use4 min722 words
Execution and RiskFundora Wiki
Slippage, Spread, and Execution Quality
Why execution quality matters in a rule-based account, how spread and slippage affect real risk, and why many traders underestimate their impact on drawdown and rule compliance.
Execution and risk use4 min689 words
Execution and RiskFundora Wiki
Position Sizing and Risk Per Trade
Definition of position sizing in a prop context, why fixed account size is misleading without risk calibration, and how traders align size with drawdown limits.
Execution and risk use5 min891 words
Execution and RiskFundora Wiki
Correlation Risk and Aggregate Exposure
How multiple positions can behave like one large bet, why correlated exposure matters in prop firms, and how aggregate risk can trigger breaches faster than expected.
Execution and risk use4 min706 words
Execution and RiskFundora Wiki
Risk-to-Reward Ratio and Expectancy
How risk-to-reward should be understood in a prop account, why ratio alone is not enough, and how expectancy links setup quality to long-run survival.
Execution and risk use4 min692 words
Execution and RiskFundora Wiki
Trading Costs and Net Performance
How spread, commission, swap, and other frictions affect real prop performance, and why gross chart results can differ materially from net account results.
Execution and risk use3 min656 words
