Funding models · Rookie
Prop firm challenge
Also searched as: challenge, evaluation, trading combine
What does Prop firm challenge mean?
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.
Example
An illustrative challenge requires $4,000 profit while maintaining equity above its loss floor.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Hitting the profit target is insufficient if another objective or trading rule is unmet.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.