Glossary · P
What is Prop firm?
A company that gives traders access to a funded account after an evaluation, usually with strict drawdown and daily-loss rules.
In context
Drawdown is the fall from the highest point of your account. Prop firms (companies that give traders a "funded" account after an evaluation) usually set a maximum drawdown: a floor below which the account is closed. The rules differ by firm; what follows is a general description of the mechanics, not an endorsement or review of any firm. Read each firm's rules at the source.
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