Glossary
What is Prop Firm?
A proprietary trading firm allocates capital to traders, commonly after an evaluation challenge, and shares the resulting profits with them.
Stands for: Proprietary Trading Firm
The operating model centres on evaluation: selling a challenge, enforcing trading rules such as drawdown and daily loss limits, promoting successful traders to funded accounts, and processing profit-split payouts.
Consistent, evidenced rule enforcement is what makes a pass or fail defensible when a trader disputes it.
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