Prop firm (compte financé)

A prop firm (proprietary trading firm) “funds” a trader after a paid challenge: hit a profit target while following strict rules (max daily loss, total drawdown, consistency of gains). Worth knowing: the “funded” account is, in the vast majority of cases, a simulated account — the payout is a contractual obligation of the firm, funded first and foremost by the fees of candidates who failed, not by an actual market gain. Nothing to do with institutional prop trading (hired traders, real capital). The real appeal: getting large exposure while risking only the fee — at the cost of iron discipline. Stay alert: drawdown rules (static vs. trailing), payout track record, and how long the firm has been around matter more than the marketing.