Prop Firm
A proprietary trading firm that provides capital to traders in exchange for a share of profits. Traders pass an evaluation to prove their skills before receiving funded capital.
Evaluation / Challenge
A test period where traders must hit a profit target while staying within risk limits (drawdown, daily loss). Passing the evaluation earns a funded account.
Funded Account
A trading account provided by the prop firm after passing evaluation. Traders keep a percentage of profits generated.
Profit Target
The percentage gain required to pass an evaluation. For example, a 10% target on a $50K account means reaching $55,000.
Profit Split
The percentage of profits the trader keeps. An 80/20 split means the trader keeps 80% and the firm keeps 20%.
Drawdown
The maximum amount your account can decline from a reference point before the account is terminated (breached).
Static Drawdown
Drawdown measured from the starting balance. The stop-out level never changes regardless of profits made. More trader-friendly than trailing.
Trailing Drawdown
Drawdown measured from peak equity. The stop-out level moves up as the account reaches new highs, meaning profits can tighten the cushion.
EOD Drawdown
End-of-day drawdown. The trailing stop-out only updates at the end of each trading day, not intraday. A middle ground between static and real-time trailing.
Daily Loss Limit
The maximum loss allowed in a single trading day. Resets at a fixed time (usually midnight UTC). Breaching this terminates the account.
Daily Pause
Instead of termination, trading is paused for the rest of the day when the daily limit is hit. The account continues the next day. Used in Mizora's Scale plan.
Breach
When a trader violates a rule (drawdown or daily loss limit), the account is terminated. The trader loses access and must start a new evaluation.
Scaling Plan
A system that increases account size as traders hit profit milestones. Can be manual (request an increase) or automatic (account doubles at each target).
Hyper Growth / Scale
An accelerated scaling model where the account automatically doubles at each profit target, from as low as $5K up to $4M.
1-Step Evaluation
An evaluation with a single phase. Hit the profit target in one go and receive a funded account. Faster but typically has a higher target.
2-Step Evaluation
An evaluation with two phases. Phase 1 has a higher target, Phase 2 has a lower target. Takes longer but some traders prefer the graduated approach.
Instant Funding
Skip the evaluation and receive a funded account immediately. Usually has tighter risk rules and a higher fee.
Minimum Trading Days
The minimum number of days you must actively trade before you can pass the evaluation. Prevents passing on a single lucky trade.
Payout
The process of withdrawing your profits from a funded account. Typically available after a holding period (7-14 days for first payout).
High-Water Mark
The highest equity your account has reached. Used as the reference point for trailing drawdown calculations.
Equity
Your account balance plus or minus any unrealized profit/loss from open positions.
Leverage
The ratio of position size to account balance. 30:1 leverage means you can control $30 of market exposure for every $1 of account balance.
Lot / Contract
A standard unit of trading. In forex, 1 standard lot = 100,000 units. In futures, 1 contract varies by instrument (e.g., 1 ES contract = $50 per point).
Sharpe Ratio
A measure of risk-adjusted return. Higher is better. Calculated as average return divided by standard deviation of returns.
Profit Factor
Total gross profit divided by total gross loss. A profit factor above 1.0 means you're net profitable. Above 1.5 is considered good.
Win Rate
The percentage of trades that are profitable. A 60% win rate means 6 out of 10 trades are winners.
Risk-Reward Ratio
The ratio of potential loss to potential gain on a trade. A 1:2 R:R means risking $100 to make $200.
Slippage
The difference between the expected price of a trade and the actual execution price. Common during high volatility or news events.
Spread
The difference between the bid (buy) and ask (sell) price. A tighter spread means lower trading costs.
EA (Expert Advisor)
An automated trading script that executes trades based on programmed rules. Also called a trading bot or algo.
News Trading
Trading during or around high-impact economic events (FOMC, NFP, CPI). Some prop firms restrict this; Mizora allows it on all plans.
Copy Trading
Automatically replicating the trades of another trader. Generally prohibited by prop firms as it doesn't demonstrate individual skill.
Consistency Rule
A requirement that no single trading day accounts for more than a certain percentage of total profit. Used by some firms to prevent gambling behaviour.
Demo Account
A simulated trading account with virtual money. Used for practice or evaluation purposes. All prop firm evaluations are conducted on demo accounts.
KYC
Know Your Customer. Identity verification required before receiving payouts. Typically requires government ID and proof of address.
Overnight Holding
Keeping positions open past market close. Some prop firms restrict this; others allow it freely.
Max Position Size
The maximum number of lots or contracts you can hold at any time. Limits concentration risk.
Account Reset / Retry
Starting the evaluation over after a breach. Some firms offer free retries; others require purchasing a new evaluation.
Affiliate / Referral
A program where existing users earn rewards for referring new traders to the platform.
No matching terms found.