Verification phase — The second phase of a two-step evaluation, with a smaller profit target, used to confirm the first phase was repeatable.
How verification phase works in prop trading
The verification phase exists to test consistency rather than performance. Its profit target is normally half of phase 1's, but the drawdown, daily loss limit, and prohibited-strategy rules are unchanged — so the account is not easier, only shorter.
Traders lose accounts in verification more often than the smaller target suggests, usually because they size up to finish quickly after the longer phase 1. The drawdown that was survivable at phase-1 sizing is unchanged, so the same risk per trade that felt safe before is now being taken with less balance cushion above the limit.
Key points
- Target is typically 50% of phase 1; the risk rules are identical.
- Minimum trading days usually reset for the phase — a fast phase 2 can still be gated on days.
- A breach here normally means restarting the whole evaluation, not just the phase.
- Some firms waive the verification phase entirely on promotional periods; that changes the product you bought.
Also known as
- verification
- phase 2
- confirmation phase
Frequently asked questions
How long does the verification phase take?
Only as long as it takes to hit the smaller target and satisfy the phase's minimum trading days. If the firm requires five trading days and you hit the target on day two, the account still cannot pass until day five.
Do the rules change in the verification phase?
The profit target shrinks. Drawdown, daily loss limits, contract or lot caps, and strategy restrictions almost always stay the same. Confirm this in the program terms — a minority of firms tighten the daily loss limit in phase 2.
Verification phase is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.