The vocabulary of prop futures trading.

A drawdown rule whose threshold moves up with every new equity high during the session, locking traders out of giving back winners.

A drawdown rule calculated once per day on your closing balance — intraday volatility doesn't count.

The maximum dollar amount you can lose in a single trading day before the account is breached.

A self-imposed limit inside the firm's actual limit — your guardrail before the firm's guardrail.

An automated trigger that closes all open positions and cancels working orders when a defined risk condition fires.

A time-based trigger that flattens the account and disables trading at a configured Eastern Time each day.

A protective pair of orders — a stop loss and a profit target — attached to an entry as a one-cancels-other group.

A stop loss adjustment that moves your stop to your entry price (plus an offset) once the trade has reached a defined favorable condition.

A pre-planned partial exit at a price level less than the full target — typically used to bank some profit and reduce risk on the remaining position.

The smallest allowable price increment for a given futures contract — and the unit most prop traders count P&L in.

A one-click trading-lockout that disables order entry until the next session — designed to prevent revenge trades after a triggering event.

A numerical score that measures plan adherence on every trade — inputs, not outputs — so you can see whether you're actually getting better.

A live trading account financed by a prop firm where the trader keeps a profit share while the firm absorbs losses against a defined drawdown rule.

The simulated trading challenge a prop firm uses to qualify traders for a funded account.