> ## Content Index > Fetch the complete content index at: https://www.propfirmduel.com/llms.txt > Use this file to discover other available public pages before exploring further. # Prop Firm Glossary: Every Term in Plain English - URL: https://www.propfirmduel.com/prop-firm-glossary/ - Published: 2026-09-27T01:58:16.000Z - Updated: 2026-09-28T06:20:10.000Z - Description: Every term on a prop firm rules page, defined in plain English and linked to the guide that explains it. - Author: Prop Firm Duel - Tags: Prop firm basics, #Import 2026-09-27 23:22, #Import 2026-09-29 04:04 **This glossary defines every term you'll see on a prop firm's rules page, each in a sentence or two.** Terms are grouped by topic, and each links to the guide that explains it in full. Firms don't always use the same words for the same rule, so always check the firm's own definition too. ## Basics - **Prop firm:** a company that sells evaluations and pays traders who pass a share of the profit. See [what is a prop firm](https://www.propfirmduel.com/what-is-a-prop-firm/). - **Funded account:** the account you trade after passing, which can earn payouts. Often simulated. - **Simulated account:** an account that uses real prices but doesn't send orders to the market. See [simulated vs live funded accounts](https://www.propfirmduel.com/simulated-vs-live-funded-accounts/). - **Live account:** an account whose orders reach the market. A few firms move top traders to one. - **Account size:** the starting balance of a program, such as 25K, 50K or 150K. See [choosing an account size](https://www.propfirmduel.com/prop-firm-account-size/). ## Evaluation terms - **Evaluation, challenge or combine:** the paid trial you trade to qualify for funding. See [how evaluations work](https://www.propfirmduel.com/how-prop-firm-evaluations-work/). - **Profit target:** the profit you must reach to pass, usually 6% in futures. See [profit targets](https://www.propfirmduel.com/prop-firm-profit-targets/). - **One-step / two-step:** an evaluation with one phase or two. See [one-step vs two-step](https://www.propfirmduel.com/one-step-vs-two-step-challenges/). - **Minimum trading days:** the fewest days you must trade before passing or a payout. See [minimum trading days](https://www.propfirmduel.com/minimum-trading-days/). - **Winning day or profitable day:** a day that ends above a set profit, used by some payout rules. - **Instant funding or straight-to-funded:** a program that skips the evaluation. See [instant funding](https://www.propfirmduel.com/instant-funding-explained/). - **Reset:** restarting an evaluation after a rule break, usually for a fee. See [reset fees](https://www.propfirmduel.com/prop-firm-reset-fee/). ## Drawdown and risk terms - **Drawdown, max loss or trailing threshold:** how far your balance can fall before the account ends. See [drawdown rules](https://www.propfirmduel.com/prop-firm-drawdown-rules/). - **End-of-day drawdown:** a limit that rises only with your closing balance. See [end-of-day drawdown](https://www.propfirmduel.com/end-of-day-drawdown/). - **Intraday trailing drawdown:** a limit that rises with your highest balance, including open profit. See [intraday trailing drawdown](https://www.propfirmduel.com/intraday-trailing-drawdown/). - **Static drawdown:** a limit that never moves. - **Lock or trail stop:** the level at which a trailing drawdown stops rising. - **Daily loss limit (DLL):** the most you can lose in one day. A soft limit pauses trading; a hard limit ends the account. See [the daily loss limit](https://www.propfirmduel.com/daily-loss-limit-explained/). - **Consistency rule:** a cap on how much of your profit can come from your best day. See [the consistency rule](https://www.propfirmduel.com/prop-firm-consistency-rule/). - **Contract limit:** the largest position you can hold. See [contract limits](https://www.propfirmduel.com/prop-firm-contract-limits/). - **Scaling plan:** a rule that raises your contract limit as you profit. - **News rule:** a rule on trading around scheduled economic releases. See [news trading rules](https://www.propfirmduel.com/prop-firm-news-trading-rules/). ## Payout terms - **Profit split:** your share of each payout, often 80% or 90%. See [profit splits](https://www.propfirmduel.com/prop-firm-profit-split/). - **Buffer:** profit you must hold above your starting balance before withdrawing. See [payout buffers](https://www.propfirmduel.com/prop-firm-payout-buffer/). - **Payout cycle or frequency:** how often you can request a payout. See [payout frequency](https://www.propfirmduel.com/prop-firm-payout-frequency/). - **Minimum and maximum payout:** the smallest and largest amount you can request at once. - **Contractor agreement:** the contract most firms sign with funded traders before the first payout. See [payout methods](https://www.propfirmduel.com/prop-firm-payout-methods/). ## Fee terms - **Evaluation fee:** the price of an evaluation, paid once or monthly. See [one-time vs monthly](https://www.propfirmduel.com/one-time-vs-monthly-prop-firm/). - **Activation fee:** a one-time charge when you pass. See [activation fees](https://www.propfirmduel.com/prop-firm-activation-fee/). - **Data fee:** a charge for live futures market data. See [data fees](https://www.propfirmduel.com/prop-firm-data-fees/). - **All-in cost:** everything you pay across every attempt until a payout. See the [All-in Cost tool](https://www.propfirmduel.com/all-in-cost/). ## Market terms - **Mini and micro contracts:** futures contract sizes; a micro is one-tenth of a mini. See [micro vs mini contracts](https://www.propfirmduel.com/micro-vs-mini-contracts/). - **Futures, forex, crypto and stock prop firms:** firms grouped by the market they fund. See [types of prop firms](https://www.propfirmduel.com/types-of-prop-firms/). ## Common questions ### What's the most important term to understand? Drawdown. It ends the most accounts, and its type changes how you should trade. ### Do firms use the same words for the same rules? Not always. One firm's "max loss" is another's "trailing threshold". Every [firm page](https://www.propfirmduel.com/firms/) links to the firm's own definitions.