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Funded account

The account a trader receives after passing an evaluation; usually simulated, with real payouts based on its performance.

Most retail prop firms fund traders in simulation and pay from company revenue. A few move consistently profitable traders to live capital. Funded accounts keep the same daily-drawdown and trailing-drawdown rules, and often add a scaling-plan.

The account is not yours; it can be closed for rule breaches, and the firm can change terms.

Example: you pass a $100,000 evaluation and receive a funded account with a $3,000 trailing drawdown. After three months and $9,000 of profit, you have withdrawn $7,200 at a 90% payout-split.

Related: evaluation, payout-split, scaling-plan, trailing-drawdown

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

An equity curve and its drawdownAn account balance rising over a year, falling from a peak to a trough, then climbing back to the old peak.ACCOUNT EQUITY$20k$12k$8k024681012TIME (MONTHS)PEAK $16,000TROUGH $12,000DRAWDOWN−25%RECOVERY
Equity curve and drawdown. An account balance plotted month by month. The fall from the $16,000 peak to the $12,000 trough is a 25% drawdown, and the shaded area lasts until the balance climbs back to the old peak.

Educational only, not advice. Spotted an error? Post in Site Feedback.