Prop firm
A structure where the trader trades with the firm's capital instead of their own and shares the profit; in the retail model, you first pass a paid evaluation.
Modern retail prop firms (similar to FTMO) offer a one- or two-phase evaluation (challenge): a trader who reaches a set profit target without breaching the daily and total loss limits gets "funded" and receives 70-90% of the profit.
Most firms have you trade on a simulated account rather than the real market, and pay out from their own revenue; so the firm's payout history and rule transparency are the most important selection criteria.
Related terms
Where it appears in the guides
Guides whose text uses this term; most frequent first.
- Vadeli platformları: NinjaTrader, Tradovate ve RithmicPlatforms & tools
- Ödeme süreçleri ve kâr paylaşımıProp firm processes
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- Prop firm ödemeleri: fatura ve beyanTax & legal
- Kayıt tutma ve muhasebe önerileriTax & legal
- Prop firm nedir, nasıl para kazandırırProp firm processes