The JoinProp glossary

Prop trading glossary.

Understand the rules, accounts and markets behind prop trading. Explore 181 terms, with plain-language definitions, practical examples and primary sources.

By Omer Rapaport · 19 topics · Content updated 11 September 2026

181Terms explained

19Trading topics

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Funded account Trailing drawdown Profit split Buy now pay later

181 terms

2

Crypto trading
24/7 crypto trading
24/7 crypto trading describes market access throughout the week, including weekends. Individual venues and products can still have maintenance breaks, outages or restrictions.

A

Account calculations
Account balance
Account balance is the account’s recorded value after booked trading results and account adjustments. It normally excludes the changing profit or loss of positions still open.
Account calculations
Account equity
Account equity is the account’s current value including open-position profit and loss. The platform’s treatment of charges and other adjustments determines the exact calculation.
Funding models
Account merging
Account merging combines eligible accounts into a single account under the provider’s rules. It differs from using a trade copier to operate separate accounts.
Fees and payouts
Account reset
An account reset restarts an eligible evaluation’s balance and objectives. It may cost money and can affect the subscription schedule; it does not preserve the previous trading results.
Trading permissions
Account sharing
Account sharing gives another person access to use a trading account. Prop providers can restrict third-party access even when the account holder consents.
Funding models
Account size
Account size is the balance or buying-power label assigned to a trading program. It can be a simulated figure and is distinct from the amount the trader is permitted to lose.
Fees and payouts
Activation fee
An activation fee is a separate charge required to open the next account stage after an evaluation. It is distinct from the entry fee and from paying to reset a failed challenge.
Platforms and automation
Algorithmic trading
Algorithmic trading uses programmed rules to make or execute trading decisions. It can automate an entire strategy or only parts such as order placement and risk controls.
Crypto trading
API trading connection
An API trading connection allows authorized software to exchange account information or trading instructions with a platform. In a prop workflow it can connect an eligible exchange account to the program's system.
Orders and execution
Ask price
The ask, also called the offer, is a quoted price at which sellers are willing to sell an instrument. Buying at market typically interacts with available asks.
Crypto trading
Auto-deleveraging
Auto-deleveraging, or ADL, is a derivatives risk mechanism that can reduce selected opposing positions when the venue's liquidation-loss process requires it. Selection follows the venue's rules.

B

Performance statistics
Backtesting
Backtesting applies a strategy’s rules to historical market data to estimate how they would have performed. Results depend on data quality and assumptions about execution and costs.
Futures
Backwardation
Backwardation describes a futures pricing relationship in which a later maturity trades below a nearer reference, often producing a downward-sloping curve. It concerns relative prices across delivery dates.
Evaluation rules
Best-day percentage
Best-day percentage compares the largest qualifying daily profit with the total profit used by a program. Losing days can reduce the denominator and increase the percentage.
Orders and execution
Bid price
The bid is a quoted price at which buyers are willing to buy an instrument. Selling at market typically interacts with available bids.
Orders and execution
Bid-ask spread
The bid-ask spread is the difference between the quoted selling and buying prices. It is an execution cost that matters even when a product advertises zero commission.
Fees and payouts
Buy now pay later
Buy now pay later in prop trading is a fee model that defers part or all of the evaluation price until a stated milestone, often passing the challenge. An initial entry fee may still apply.

C

Futures
Calendar spread
A calendar spread combines opposite positions in different maturities of the same underlying futures product. Its result depends on how the price difference changes.
Futures
Cash settlement
Cash settlement resolves a derivative at a defined settlement value through a monetary adjustment rather than delivery of the underlying asset.
Due diligence
CFTC
The Commodity Futures Trading Commission is a US federal regulator overseeing derivatives markets within its jurisdiction. Its role should be distinguished from a prop provider’s private evaluation rules.
Orders and execution
Commission
Commission is an explicit trading charge, often based on the number of units, contracts or lots executed. It can be charged on each side or on a round trip.
Evaluation rules
Consistency rule
A consistency rule limits how much performance may be concentrated in one day or another measured unit. The calculation and consequence vary across programs and stages.
Futures
Contango
Contango describes a futures pricing relationship in which a later maturity trades above a nearer reference, often producing an upward-sloping futures curve. The comparison must specify its dates or spot reference.
Futures
Continuous futures chart
A continuous futures chart joins successive contract histories into one series. Back-adjustment can alter earlier prices to reduce gaps caused by switching contract months.
Forex and CFDs
Contract for difference
A contract for difference, or CFD, is a derivative whose result reflects a change in the underlying reference price. The trader does not own the underlying asset through the CFD.
Futures
Contract multiplier
A contract multiplier converts a quoted price or price change into the monetary exposure or result for a contract. Its units depend on the product.
Futures
Contract rollover
Contract rollover replaces exposure in an expiring futures contract with exposure in a later contract. It involves closing one contract and opening another.
Crypto trading
Cross margin
Cross margin shares eligible account collateral across supported positions. Losses on one position can reduce the collateral available to support other positions.
Crypto trading
Crypto CFD
A crypto CFD is a contract for difference referencing a cryptocurrency price. It provides derivative exposure without transferring ownership of the referenced coin to the trader.
Crypto trading
Crypto prop trading
Crypto prop trading applies a firm's capital or evaluation program to cryptocurrency-related instruments. A program may offer exchange derivatives, simulated crypto trading or crypto CFDs, each with different mechanics.
Crypto trading
Crypto spot trading
Crypto spot trading exchanges a cryptocurrency for another asset at an agreed market price, with settlement under the venue's process. It is different from taking a derivative position on that cryptocurrency.
Forex and CFDs
Currency pair
A currency pair quotes one currency in units of another. The first is the base currency; the second is the quote currency.

D

Drawdown and loss limits
Daily loss limit
A daily loss limit restricts losses within the provider’s trading day. Its reference value, included costs, reset time and enforcement can differ from the total loss rule.
Drawdown and loss limits
Daily reset time
Daily reset time is the boundary at which a program starts a new trading day for calculations such as daily losses or qualifying days. It may not match the trader’s local midnight.
Trading styles
Day trading
Day trading opens and closes positions within the same trading day. The relevant session boundary depends on the market and program.
Platforms and automation
Depth of market
Depth of market displays resting bids and offers at multiple price levels, often as a ladder. It shows displayed liquidity rather than a promise that every quoted order will remain available.
Drawdown and loss limits
Drawdown
Drawdown measures a decline from a previous account peak to a subsequent low. In prop programs, the word also commonly refers to the permitted loss amount or threshold.
Drawdown and loss limits
Drawdown buffer
A drawdown buffer is the distance between the account’s current monitored value and the applicable loss floor. It describes remaining room, not the headline account size.

E

Drawdown and loss limits
End-of-day drawdown
End-of-day drawdown usually means the trailing threshold updates using session-closing values. It does not necessarily mean violations are checked only at the close.
Drawdown and loss limits
Equity-based loss limit
An equity-based loss limit evaluates the account including floating profit and loss. A breach can occur while positions remain open even if the realized balance is above the threshold.
Fees and payouts
Evaluation fee
An evaluation fee buys access to a trading assessment and associated services. It is not generally a deposit into a brokerage account, and the charging model depends on the product.
Prediction markets
Event contract
An event contract defines a payoff linked to an observable outcome under specified rules. The contract's question, threshold, deadline and settlement process together determine the exposure.
Platforms and automation
Expert advisor
An expert advisor, or EA, is software that automates analysis or trading tasks in MetaTrader. Its use may be allowed while particular automated strategies remain prohibited.

F

Fees and payouts
Fee refund
A fee refund returns an evaluation charge when the program’s stated conditions are satisfied. Passing alone may not qualify, and some products do not refund their fee.
Futures
First notice day
First notice day is the first date on which delivery notices can be issued for a deliverable futures contract under its exchange rules. It is distinct from the final trading date.
Futures
Flattening positions
Flattening positions means closing open market exposure so that no position remains. A prop firm's daily flat deadline may also require cancellation of working orders that could reopen exposure.
Trading permissions
Forbidden trading practices
Forbidden trading practices are behaviors a provider excludes under its program terms, including some attempts to exploit simulation or market-data imperfections.
Forex and CFDs
Forex
Forex is the market for exchanging one currency against another. Trading a currency pair expresses exposure to the relative value of its two currencies.
Funding models
Free trial
A free trial gives limited access to a practice version of a trading service without an evaluation entry fee. Its duration, objectives and benefits may differ from the paid product.
Futures
Front-month contract
The front-month contract is the nearest listed futures maturity that is still relevant for trading. Traders also use the term loosely for the active nearby contract, which may change before expiration.
Market analysis
Fundamental analysis
Fundamental analysis examines economic, business or supply-and-demand factors that can influence an asset’s value or price. It differs from analyzing price patterns alone.
Funding models
Funded account
A funded account is a program account on which a qualifying trader may earn a share of eligible performance. Depending on the provider and stage, the trades may be simulated or live.
Fees and payouts
Funded account reactivation
Funded account reactivation restores eligible access after a funded-stage account closes, under a provider’s recovery policy. It differs from resetting the preliminary evaluation.
Crypto trading
Funding fee
A funding fee is the actual payment or receipt associated with a perpetual position at a funding event. It generally depends on the applicable position value and funding rate.
Crypto trading
Funding rate
A funding rate is the rate used to calculate a periodic transfer between opposing perpetual positions. Its sign, calculation and interval depend on the contract and venue.
Futures
Futures contract
A futures contract is a standardized exchange-traded agreement with specified underlying exposure and settlement terms. Contract size, price increments and expiration are defined by the product.
Futures
Futures expiration
Futures expiration is the end of a contract’s defined life, after which its settlement provisions apply. Last trading and delivery-related deadlines depend on the product.
Futures
Futures price limit
A futures price limit restricts the permitted trading-price range under exchange rules. Reaching a limit can constrain trading or trigger a pause, depending on the product and session.
Futures
Futures prop trading
Futures prop trading applies a firm's trading or evaluation model to futures contracts. Retail programs may begin with simulated trading and offer rewards or later live-market access under separate rules.

H

Drawdown and loss limits
Hard breach
A hard breach is a rule violation that ends an account or makes it ineligible to continue under its current terms. The label and recovery options are provider-specific.
Risk management
Hedging
Hedging uses an offsetting exposure to reduce a particular existing risk. It may reduce some price risk while introducing costs or a mismatch between the positions.
Drawdown and loss limits
High-water mark
A high-water mark is the highest account value recognized by a particular calculation. Trailing drawdown rules may use an intraday equity peak or a highest end-of-day balance.

I

Prediction markets
Implied probability
Implied probability interprets a contract price relative to its conditional payout as a market probability estimate. For a standard $1-or-zero binary payoff, a 60-cent price is commonly read as approximately 60%.
Evaluation rules
Inactivity rule
An inactivity rule limits how long an account may go without qualifying trading activity. Exceeding that interval can suspend or close the account even if its loss limits remain intact.
Crypto trading
Index price
An index price is a reference derived from selected market-price inputs under a published methodology. Crypto derivatives commonly use a weighted reference from several underlying markets.
Futures
Initial margin
Initial margin is the collateral requirement to establish a margined position. Futures brokers can require more than the exchange minimum, and requirements can change.
Funding models
Instant funding
Instant funding is a marketing term for access to a reward-eligible account without a conventional preliminary challenge. Products using the label can differ in their milestones and execution model.
Drawdown and loss limits
Intraday trailing drawdown
Intraday trailing drawdown updates an account’s loss floor as its reference value reaches new highs during the session. Where unrealized gains count, an open trade can raise the threshold before it closes.
Crypto trading
Inverse contract
An inverse contract commonly uses a cryptocurrency for margin and settlement while its contract value is quoted in another unit, such as US dollars. Its coin-denominated payoff uses reciprocal prices.
Crypto trading
Isolated margin
Isolated margin allocates collateral to a particular position or position group rather than automatically supporting it with all eligible account collateral. Exact replenishment and liquidation rules depend on the platform.

K

Due diligence
Know your customer
Know your customer, or KYC, is an identity-verification process used in financial and trading services. A prop provider may require verification before issuing an agreement or paying rewards.

L

Trading permissions
Latency arbitrage
Latency arbitrage seeks to exploit differences in the timing of price information. In a simulated prop account, trading against a delayed quote can conflict with the provider’s rules.
Platforms and automation
Level 1 market data
Level 1 market data provides the best bid and ask and associated top-of-book information. It does not provide the same view of multiple resting price levels as depth data.
Forex and CFDs
Leverage
Leverage creates market exposure larger than the capital required to support the position. Gains and losses depend on the exposure, not only the margin posted.
Orders and execution
Limit order
A limit order permits execution only at its stated price or better. It controls the worst acceptable execution price but may remain unfilled.
Crypto trading
Linear contract
A linear contract has profit and loss proportional to the underlying price change for a fixed unit quantity. Many crypto linear contracts use a stablecoin as margin and settlement currency.
Crypto trading
Liquidation price
Liquidation price is a displayed price threshold associated with forced position reduction or closure for insufficient margin. In account-wide margin systems it may be only an estimate that changes with other exposures.
Market mechanics
Liquidity
Liquidity describes how readily a market can absorb buying or selling without a substantial price change. It depends on available counterparties and quantities, not just recent activity.
Prediction markets
Liquidity-based position cap
A liquidity-based position cap limits trade or position size using a market-liquidity measure, such as a share of recent volume. It can apply alongside the program's overall exposure ceiling.
Funding models
Live funded account
A live funded account places trades with actual capital in live markets. Some retail prop programs offer it as a later stage after a trader builds a track record.
Market mechanics
Long position
A long position has positive directional exposure to the instrument’s price. It generally benefits when the price rises, before costs and other contract effects.
Forex and CFDs
Lot size
Lot size is the quantity of an instrument represented by a trading lot. The contract specification determines the units and any smaller lot increments.

M

Market analysis
MACD
Moving average convergence divergence, or MACD, compares moving averages to describe momentum. A signal line and histogram help show changes in that relationship.
Futures
Maintenance margin
Maintenance margin is the minimum account support required to keep a margined position open. Falling below it can require additional funds or position reduction.
Crypto trading
Maker and taker fees
Maker and taker fees distinguish executions that add resting liquidity from executions that remove available liquidity. Fee treatment depends on how the order actually fills, not just its label.
Futures
Margin call
A margin call is a demand for additional collateral after an account no longer meets its margin requirement. A provider may also liquidate positions according to its terms.
Crypto trading
Mark price
Mark price is a venue-calculated valuation reference for a derivative, often based on an index and other pricing inputs. It may be used for unrealized profit and loss or liquidation checks.
Futures
Mark-to-market
Mark-to-market updates a position’s valuation using current or settlement prices. Futures daily settlement transfers gains and losses based on the applicable settlement process.
Prediction markets
Market close time
Market close time is the point after which a contract stops accepting trades. It can differ from the event time, the time an outcome becomes known and the time settlement is completed.
Platforms and automation
Market data
Market data is information such as quotes, executed prices and volume used to observe a market. Real-time data and delayed data can produce different trading experiences.
Orders and execution
Market order
A market order requests execution at available market prices rather than a specified limit price. It prioritizes execution over control of the final price.
Prediction markets
Market resolution
Market resolution determines which outcome applies under an event contract's published rules. It is separate from the end of trading and from the arrival of a prop reward payment.
Evaluation rules
Maximum allocation
Maximum allocation is a provider’s aggregate account-capital limit for a trader, strategy or related set of accounts. It is separate from the size of an individual account.
Drawdown and loss limits
Maximum loss limit
A maximum loss limit is the account threshold a trader must not breach. It may be fixed or trailing, and may be monitored using equity even when calculated from balance.
Evaluation rules
Maximum position size
Maximum position size is the largest exposure a program allows at one time, often expressed in contracts or lots. Multiple open orders can together exceed the limit.
Futures
Micro E-mini futures
Micro E-mini futures are smaller versions of the corresponding CME equity-index E-mini contracts. Their contract size is one tenth of the respective E-mini, enabling smaller exposure increments.
Futures
Micro-to-mini ratio
A micro-to-mini ratio specifies how a program converts micro contracts into equivalent units when enforcing its position-size limit. This accounting rule is separate from exchange contract specifications.
Fees and payouts
Minimum payout
Minimum payout is the smallest amount a provider will accept or process in a withdrawal request. It is separate from any profit buffer or winning-day requirement.
Evaluation rules
Minimum trading days
Minimum trading days is an objective requiring activity on a specified number of distinct sessions. The qualifying activity and session boundaries are defined by the program.
Market analysis
Moving average
A moving average smooths a price series using a rolling set of observations. It helps describe trend but responds after the prices used in its calculation have occurred.

N

Trading permissions
News blackout window
A news blackout window is a restricted period around a specified economic announcement during which certain trading actions are prohibited. The affected instruments and account stages depend on the provider.
Trading permissions
News trading
News trading means opening, closing or holding positions around market-moving announcements. Firms can restrict certain events, instruments, order executions or account stages.
Due diligence
NFA BASIC
NFA BASIC is a public research tool for checking the background of derivatives-industry professionals and firms. It helps users examine registration and related records.
Fees and payouts
No activation fee
No activation fee describes a pricing plan that does not charge a separate fee to activate the next account stage. It does not mean the evaluation, subscription or other services are free.
Futures
Notional value
Notional value measures the underlying economic exposure represented by a position. For many futures, it is the quoted price multiplied by the contract multiplier and contract count.

O

Fees and payouts
On-demand payout
On-demand payout means a trader can request payment when the account meets the program’s eligibility conditions rather than waiting for a fixed recurring request date. It does not guarantee immediate approval or receipt.
Funding models
One-step evaluation
A one-step evaluation has one assessment phase before the next account stage. It can still include several simultaneous objectives and a subsequent identity or account review.
Fees and payouts
One-time evaluation fee
A one-time evaluation fee is paid once for a particular assessment purchase rather than billed on a recurring schedule. It does not necessarily include resets, future purchases or activation charges.
Futures
Open interest
Open interest is the number of outstanding derivative contracts that remain open. Each outstanding contract has both a long side and a short side, counted once.
Forex and CFDs
Overnight financing
Overnight financing is a debit or credit applied to positions held across a provider’s financing cutoff. In retail forex and CFDs it may be called swap or rollover financing.
Trading permissions
Overnight holding
Overnight holding means keeping a position open across a trading-day boundary or market break. Permission depends on the instrument, account type and program stage.
Trading psychology
Overtrading
Overtrading means taking more trades or exposure than the strategy and risk plan justify. It can come from boredom, frustration or pressure to hit a target.

P

Fees and payouts
Payout
A payout is an approved payment to a trader under a program agreement. It may come from eligible simulated performance or live trading, depending on the account.
Fees and payouts
Payout cap
A payout cap limits how much can be requested or paid in a particular withdrawal or period. It can be a fixed amount, a percentage of the balance, or both.
Fees and payouts
Payout cycle
A payout cycle is the interval or sequence of requirements governing repeat withdrawal requests. Calendar waiting periods and trading-day conditions are not interchangeable.
Fees and payouts
Payout eligibility
Payout eligibility means the account satisfies the conditions required to request payment. These may include qualifying days, minimum profit, consistency, identity checks and rule compliance.
Crypto trading
Perpetual futures
Perpetual futures are derivatives designed to provide continuing exposure without a scheduled contract expiration. Crypto perpetuals commonly use funding payments to help align their price with a reference market.
Futures
Physical delivery
Physical delivery settles a futures obligation through delivery of the specified underlying asset or deliverable instrument rather than only a cash difference. Procedures depend on the contract.
Forex and CFDs
Pip
A pip is a conventional unit of forex price movement. It is typically 0.0001 for many pairs and 0.01 for yen-quoted pairs.
Forex and CFDs
Pipette
A pipette is one tenth of a pip. Platforms may quote fractional pips to show smaller price differences than a full conventional pip.
Risk management
Position sizing
Position sizing determines how much of an instrument to trade. A common approach divides a chosen risk budget by the estimated loss per unit at the stop.
Crypto trading
Post-only order
A post-only order is intended to enter the order book as resting liquidity rather than execute immediately against another order. A marketable order may be rejected or cancelled under the venue's rules.
Prediction markets
Prediction market
A prediction market lets participants trade contracts linked to specified real-world outcomes. Prices change as buyers and sellers reassess those outcomes and available liquidity.
Prediction markets
Prediction-market making
Prediction-market making provides buy and sell quotes in event contracts with the aim of earning spread or eligible liquidity incentives. Filled quotes create inventory and outcome risk.
Prediction markets
Prediction-market oracle
A prediction-market oracle is a mechanism that supplies or verifies outcome information for settlement, particularly in blockchain-based markets. Some systems allow proposals and disputes before a result becomes final.
Prediction markets
Prediction-market prop trading
Prediction-market prop trading applies a firm's trading or evaluation model to event contracts. Retail offerings may assess simulated positions and pay contractual rewards rather than place trades in the participant's exchange account.
Performance statistics
Profit factor
Profit factor divides gross profit from winning trades by the absolute amount lost on losing trades over a measured sample. A value above one indicates positive profit under that accounting basis.
Fees and payouts
Profit split
A profit split is the proportion of eligible profit or reward allocated to the trader and provider. It applies to the eligible amount, which may be smaller than total displayed profit.
Evaluation rules
Profit target
A profit target is the required increase in account performance to satisfy an evaluation objective. Programs may require closed positions and a final review before marking it complete.
Funding models
Prop firm challenge
A prop firm challenge is an evaluation in which a trader must meet performance objectives while following risk and conduct rules. Passing can qualify the trader for the next program stage.
Funding models
Proprietary trading
Proprietary trading means a business trades for its own account. Retail prop programs may instead assess traders in simulation and pay contractual rewards, so the account model needs to be identified separately.

R

Risk management
R-multiple
An R-multiple expresses a trade result relative to its original risk amount, called one R. It helps compare trades with different position sizes.
Account calculations
Realized profit and loss
Realized profit and loss is the result booked when a position, or part of it, is closed. Net realized results include the costs recognized by the accounting method.
Crypto trading
Reduce-only order
A reduce-only order is constrained to decrease an existing position rather than increase exposure or open an opposite position. The platform may resize or cancel it as the position changes.
Market analysis
Relative strength index
The relative strength index, or RSI, compares recent average gains and losses to measure momentum on a 0-100 scale. Common threshold labels include overbought and oversold.
Market analysis
Resistance
Resistance is a price area where selling interest has previously slowed or reversed a rise, or where a trader expects such interest. It is not an assured ceiling.
Prediction markets
Resolution dispute
A resolution dispute challenges a proposed event-market outcome through the venue's formal process. It can delay final settlement while evidence or rule interpretation is reviewed.
Prediction markets
Resolution source
A resolution source is the specified authority, publication or data feed used to decide an event contract's outcome. It is part of the contract rules rather than an interchangeable news reference.
Trading psychology
Revenge trading
Revenge trading is trading driven by the urge to recover a recent loss rather than by a valid setup. It can involve rushed entries or increased exposure.
Risk management
Reward-to-risk ratio
Reward-to-risk ratio compares a trade’s planned potential gain with its planned loss. A 2:1 reward-to-risk ratio targets two units of gain for one unit at risk.
Risk management
Risk per trade
Risk per trade is the planned loss on one trading idea, usually estimated from position size and the intended exit level. Actual losses can differ because of execution and costs.
Risk management
Risk per trade idea
Risk per trade idea aggregates exposure associated with one trading thesis, which can include several positions or correlated instruments. It can exceed the risk shown on a single order.

S

Evaluation rules
Scaling plan
A scaling plan changes the permitted account allocation or position size when specified conditions are met. “Scaling” can describe different mechanisms at different providers.
Trading styles
Scalping
Scalping seeks relatively small price moves through short holding periods. Frequent execution makes spread, commissions and slippage especially important.
Futures
Settlement price
A settlement price is an exchange-determined reference used for specified valuation or settlement purposes. It can differ from the last transaction and from a contract's final expiration settlement value.
Market mechanics
Short position
A short position has negative directional exposure to an instrument’s price. It generally benefits when the price falls, before costs and other contract effects.
Funding models
Simulated funded account
A simulated funded account uses fictitious trading capital but may qualify its trader for real monetary rewards. Orders in that account do not themselves establish live market positions.
Orders and execution
Slippage
Slippage is the difference between an expected execution price and the actual fill. It can improve or worsen the result and can also occur in simulated environments.
Drawdown and loss limits
Soft breach
A soft breach is a violation handled with a temporary restriction or another limited consequence instead of immediate permanent account closure. Not every provider uses the term.
Crypto trading
Stablecoin
A stablecoin is a cryptoasset designed to track a reference value, commonly a fiat currency. Its ability to maintain that value depends on its structure, backing and redemption arrangements.
Drawdown and loss limits
Static drawdown
Static drawdown uses a fixed loss floor rather than moving it upward with profits. The permitted distance above that floor grows when the account gains value.
Orders and execution
Stop-limit order
A stop-limit order activates a limit order after a stop condition is met. It limits the execution price but may fail to exit when the market moves beyond the limit.
Orders and execution
Stop-loss order
A stop-loss order is intended to exit a position after an adverse price threshold is triggered. A conventional stop becomes a market order, so its fill can differ from the trigger.
Fees and payouts
Subscription fee
A subscription fee is a recurring payment for continued access to an evaluation or trading service. Billing follows the provider’s schedule and cancellation terms rather than the number of trades placed.
Market analysis
Support
Support is a price area where buying interest has previously slowed or reversed a decline, or where a trader expects such interest. It is a zone to evaluate rather than a guaranteed floor.
Forex and CFDs
Swap-free account
A swap-free account does not apply the standard overnight swap charges to eligible positions under its terms. The provider may use different pricing or other conditions for this account type.
Trading styles
Swing trading
Swing trading aims to capture moves over multiple sessions, often holding positions for days rather than minutes. It exposes positions to overnight and weekend conditions.

T

Orders and execution
Take-profit order
A take-profit order seeks to close a position when a specified favorable price condition is met. Trigger and execution mechanics depend on the platform and instrument.
Market analysis
Technical analysis
Technical analysis studies price history and market statistics to describe patterns and form trading hypotheses. It does not establish that a historical pattern will repeat.
Funding models
Three-step evaluation
A three-step evaluation requires three assessment phases before progression to the next account stage. Each phase can have its own target and conditions.
Futures
Tick size
Tick size is the minimum permitted price increment for a contract. It measures price movement, while tick value translates that movement into money.
Futures
Tick value
Tick value is the monetary gain or loss for a one-tick price move in one contract. It depends on the contract multiplier and tick size.
Platforms and automation
Trade copier
A trade copier duplicates trading instructions from a lead account to other accounts. It can simplify execution but does not make accounts identical or override provider permissions.
Performance statistics
Trading expectancy
Trading expectancy is the average result implied by a strategy’s win frequency and average gains and losses. It can be expressed in money or risk units.
Performance statistics
Trading journal
A trading journal records trades and the reasons, conditions and outcomes associated with them. It supports review of execution, behavior and performance patterns.
Risk management
Trading plan
A trading plan records the conditions for entering, sizing, managing and exiting trades. It also sets the circumstances in which the trader will stay out.
Platforms and automation
Trading platform
A trading platform is the interface used to view prices, submit orders and manage positions. The platform, data provider and account program are separate parts of the service.
Market mechanics
Trading volume
Trading volume measures the quantity traded during a period. It counts activity, whereas open interest counts outstanding contracts remaining open.
Drawdown and loss limits
Trailing drawdown
Trailing drawdown moves the loss threshold upward when a specified account reference reaches a new high. The reference may be intraday equity or an end-of-day balance.
Orders and execution
Trailing stop
A trailing stop adjusts a position’s protective stop as the market moves favorably. It manages an individual exit and is different from a prop account’s trailing drawdown rule.
Funding models
Two-step evaluation
A two-step evaluation requires two assessment phases, usually with a separate profit target in each. Completing the first phase does not itself grant access to funded-stage rewards.

U

Account calculations
Unrealized profit and loss
Unrealized profit and loss is the changing gain or loss on an open position. It is also called floating P&L and can affect risk limits before a trade closes.

V

Funding models
Verification phase
A verification phase is a second trading assessment used in some evaluation programs. It checks performance against another set of objectives before funded-stage onboarding.
Market mechanics
Volatility
Volatility measures the variability of price changes over a specified period. It describes movement, not whether the next move will be upward or downward.
Market analysis
Volume profile
Volume profile groups historical traded volume by price level over a selected period. It highlights where activity occurred rather than showing today's resting orders.
Market analysis
Volume-weighted average price
Volume-weighted average price, or VWAP, is an average price weighted by traded volume over a chosen interval. A session VWAP restarts at its defined session boundary.

W

Trading permissions
Weekend holding
Weekend holding means retaining a position across the weekend, whether the market closes or continues trading. Permission depends on the product, account type and program stage.
Performance statistics
Win rate
Win rate is the proportion of measured trades that finish profitably. The treatment of breakeven trades and costs should be specified when comparing results.
Evaluation rules
Winning day
A winning day is a trading session that meets a provider’s stated profit threshold for a program objective. A day with any positive result may not qualify.

Y

Prediction markets
Yes and No contracts
Yes and No contracts represent opposite sides of a binary event proposition. In a standard fully collateralized binary market, one side pays the stated settlement amount and the other pays zero after a decisive resolution.

Sources and editorial approach

Author: Omer Rapaport. Publisher: JoinProp.

Each term page links to the primary sources used for its definition. We prioritize exchange education, platform documentation, regulator resources and provider-published rules. Definitions are written for JoinProp’s prop trading audience; examples are illustrative rather than quoted offers.

Account terminology is not standardized across firms. Read the agreement for the exact product, stage and jurisdiction. A “funded” account may use simulated capital, and a headline account size is not the same as a loss allowance.

This glossary focuses on evaluation rules, payouts, drawdown, risk, execution, forex, futures, crypto and prediction markets. Synonyms share a page to keep the reference useful and avoid duplicate entries. The list will grow when a new concept adds distinct value.

Frequently asked questions

What is a prop trading glossary used for?

A prop trading glossary explains account rules, market mechanics and payout terminology. Use it to understand a term, then check the agreement for the specific provider, product and account stage before relying on a rule.

Sources: FTMO - Trading objectives · Topstep - Program overview

Does a funded prop account always trade live money?

No. A funded account can use simulated execution with contractual rewards, or it can be a live trading account. The account agreement determines the execution model and payout conditions; the account label alone does not establish ownership of the displayed capital.

Sources: FTMO - Account capital and simulated balances · FTMO Futures - Sim-funded accounts

Is advertised account size the amount a trader can lose?

No. Account size is a balance or buying-power label. The usable loss allowance is constrained by the applicable drawdown and daily loss rules, and position limits may create additional restrictions.

Sources: FTMO - Trading objectives · Topstep - Program overview

Are evaluation rules and payout terms the same at every prop firm?

No. Profit targets, loss calculations, permitted strategies, fees and payout conditions can differ by provider, product and stage. Read the current rules for the exact account rather than applying another program's terms.

Sources: FTMO - Trading objectives · Topstep - Program overview

Does this glossary cover futures, crypto and prediction markets?

Yes. It covers futures contracts and evaluation rules, crypto instruments such as perpetual futures, and prediction-market event contracts and resolution. These products have different execution, settlement and risk mechanics; a prop program may impose additional restrictions.

Sources: CME Group - Introduction to futures · Bybit - USDT perpetual contract introduction · Bybit - Funding fee calculation · Polymarket - Markets and events

How do the glossary search and filters work?

Search matches terms, abbreviations and definitions. Topic and level filters narrow the same results together. Clear filters restores the full list. Each term has its own URL, with an explanation, illustrative example, related terms and source links.