📖 Glossary

Evaluation / Challenge

A simulated trading test a trader must pass before receiving a funded account.

Profit split

The percentage of profits the trader keeps; the firm keeps the remainder.

Drawdown

The maximum loss allowed, measured daily and/or overall, before the account is breached.

Trailing drawdown

A drawdown limit that moves up with the account's highest balance, rather than staying fixed.

Scaling plan

Rules for increasing account size after consistent, profitable performance.

Consistency rule

A rule requiring profits to be spread across multiple days rather than earned in one large trade.

Payout

A withdrawal of the trader's share of profits from a funded account.

Instant funding

A funded account offered without a prior evaluation, usually at a higher cost or lower split.