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Plain-language explanations of proprietary-trading, firm-rule, and futures terminology — each with the detail that decides whether a rule costs you an account.
What the products are — prop firms, evaluations, funded accounts, and what an account size actually buys you.
The rules that fail accounts and gate payouts — drawdown mechanics, consistency, position caps, and prohibited strategies.
Contract mechanics and execution — tick values, margin, order types, platforms, and the cost of a bad fill.
Educational summaries reviewed by Funded.Now Editorial Team on . Firms and platforms may define or apply the same term differently, so verify any rule in the current official program terms.
The terms that most often decide whether an evaluation passes and a payout clears.
A proprietary trading firm gives you access to an account it funds, usually after you pass a paid evaluation, and you keep an agreed share of the profits. You do not deposit trading capital and you do not own the account — access lasts as long as you stay inside the firm's risk rules.
The drawdown mechanic (trailing, end-of-day, or static), the profit target measured against that drawdown, the consistency rule, and the total cost to a first payout including activation and monthly fees. Those four decide whether a program suits your strategy far more than the profit split does.
No. Terms like trailing drawdown, consistency rule, and minimum trading days are applied differently between firms, and the difference is often material. These definitions describe general industry usage — always confirm the specific wording in the firm's own program terms.
A trailing drawdown moves its breach level up as the account makes new highs, so profits permanently tighten how much you can lose. A static drawdown fixes the level when the account opens, so every dollar of profit becomes permanent cushion. The same dollar allowance is much harder to survive under a trailing rule.
Use the comparison tools to review listed costs and rules, then confirm the applicable terms with the firm.
Compare Prop FirmsA prop firm glossary defines the terminology used by proprietary trading firms — the rules that fail accounts (trailing drawdown, daily loss limits, consistency rules), the fees that make up the real cost of getting funded, and the futures market mechanics your risk per trade depends on. The same word can mean different things at different firms, so each definition here describes general industry usage and flags where firms diverge.
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