Funded account
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.
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 a real account funded by the firm. Profit splits range from 80/20 to 100% to the trader up to a cap, then split.
Funded accounts have their own rule sets — usually stricter than evaluation. Trailing drawdown often becomes static or end-of-day. Daily loss limits, consistency rules, and max-position size apply. 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.