Funded account
A trading account provided after a prop firm evaluation or approval process where the trader keeps a profit share while operating under defined risk rules.
A funded account is the post-evaluation stage at a prop firm. The trader pays an evaluation fee (or a monthly subscription that bundles evaluations), passes a Combine or evaluation by hitting a profit target without breaching rules, and gets access to the next account stage. Profit splits vary by firm and account type.
Funded accounts have their own rule sets, and they can differ sharply from evaluation rules. Drawdown calculation, daily loss limits, payout eligibility, consistency rules, inactivity rules, and max-position size can all change. Most prop accounts get blown by rule violations, not by bad entries.
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Related terms
- Evaluation (Combine)
The simulated trading challenge a prop firm uses to qualify traders for a funded account.
- Trailing drawdown
A drawdown rule whose threshold moves up with every new equity high during the session, locking traders out of giving back winners.
- Daily loss limit
The maximum dollar amount you can lose in a single trading day before the account is breached.