The specific account or evaluation package offered by the prop firm. Plans vary in account size, evaluation difficulty, profit targets, and rules.
Choosing the right plan is essential because it determines how much capital is available, the profit targets, and the trading conditions. Some plans may be easier to pass but offer lower payouts, while others have stricter rules.
A trader selects a $100,000 evaluation plan requiring a $6,000 profit target with a maximum $3,000 drawdown. They must balance risk and reward to pass the evaluation without violating the rules.
A financial instrument is the entity being bought and sold while trading.
A firm that provides traders with capital to trade financial instruments, such as futures. Traders retain a percentage of the profits they generate, while the firm assumes the risk.
A smaller-sized futures contract (e.g., 1/10th the size of a standard contract), which allows for more flexible risk management.
The standard-sized futures contract traded in the market.
A set milestone where a trader can increase their contract size or risk, typically based on achieving profits.