Funded Account
A funded account is trading capital provided by a prop firm after you pass its evaluation, run under the firm's rules.
A funded account is prop-firm capital you earn by passing the evaluation, traded under firm rules with a contracted profit split. Rule breaches, especially drawdown limits, can end it.
A funded account is the capital a prop firm provides to a trader after they pass the evaluation phase. It is simulated or demo capital in most models, traded under the firm's rules, with the trader keeping a contracted profit split and the firm absorbing losses beyond the drawdown limit. The account carries conditions: maximum daily loss, maximum overall drawdown, consistency rules and minimum trading days. Violating them can end the arrangement.
How It Works
- Funded after passing the challenge phase
- Run under daily and overall drawdown limits
- Profits paid on schedule per the firm's payout policy
Trading Tips
The account is a contract: know the breach conditions before you trade
Treat the drawdown limit as your real stop, not the level you allow yourself
A firm that makes payouts hard is not worth the cheapest challenge fee
Funded Account Example
Say you pass a $50,000 evaluation and receive funded credentials Monday. First month you make $2,000 and keep $1,600 on the 80% split, withdrawn Friday. The capital was never yours. The payout is.
How Traders Use Funded Account
Trade funded capital duller than your own: the rules punish excitement. Withdraw on schedule to prove the firm pays, scale only after three clean payouts, and keep a personal buffer so no single firm owns your income.
Related Terms
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