What is Prop Firm?
A proprietary trading firm that funds traders who pass an evaluation challenge, allowing them to trade larger capital in exchange for a share of profits.
In-Depth Explanation
Practical Example
"A trader passes a two-phase FTMO challenge and receives a £100,000 funded account, keeping 80% of profits."
Related Terminology
Funded Account
A live trading account funded with a prop firm's capital after a trader passes the firm's evaluation process, rather than the trader's own money.
Drawdown Limit
The maximum allowed loss on a trading account before trading privileges are suspended.
Bull Market
A market condition where prices are rising or expected to rise.
Bear Market
A market condition where prices are falling or expected to fall.
Tradeable Instruments Affected
Tactical How-To Guides
How to Start Trading in the UK — Step by Step
Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.
How to Day Trade — Step by Step
Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.
How to Keep a Trade Journal
Stop gambling and start trading. Learn the exact process for keeping a professional trading journal that identifies your edge.
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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