New to prop trading? These are the words you need to know!

Last time, we went over the basics of classic trading terminology. Now let’s dive into the prop side of things. Because while prop is kind of like the younger sibling of standard trading, it comes with its own set of words. And trust us—even experienced traders sometimes get confused. But don’t worry, we’ll go through it together faster than you can say “performance reward ratio.”

Challenge

Every Fintokei product is a challenge. Whether you choose ProTrader, SwiftTrader, or StartTrader, it’s always a challenge you need to complete before getting a virtual funded account.

You might also come across the word “program.” This refers to all phases of the challenge—from the start up to the moment you complete it and get the virtual funded account.

A “challenge account” or “challenge phase” refers to an account where the challenge hasn’t been completed yet.

Time limit

Some challenges have time limits. If you complete the challenge phase too early or too late, your attempt won’t be valid.

For example:

Virtually funded account

This one’s important—everything is virtual. You never trade with real money. Even once you pass the challenge and receive an account, it’s still just a simulation. You trade as if it were real money, without risking your own capital. But don’t worry, the money we pay out is very real. 😉

What is a free trial?

A free trial lets you test the first phase of any challenge for free. You choose a program and go. If you manage to complete the first phase, you’ve got proof you can make it. Every trader can try up to three free trials. 3️⃣

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Performance reward

Once you complete all phases of the challenge and get a virtual funded account, you’ll start working toward your payout—your “performance reward.” A payout is the process of receiving funds. The performance reward is the actual money that lands in your account.

Then there’s the “performance reward ratio”—this tells you what percentage of the profit you made you’ll take home. So if you’re trading on a ProTrader account with an 80% performance reward ratio and you make $1,000 in profit, you’ll get paid $800. That amount is your performance reward.

Still with us? Let’s keep going!

Dynamic performance reward (DPR)

We promise this is the last headscratcher—but a good one! Thanks to DPR, you can earn up to 100% of the performance reward ratio. But here’s the catch—you can only unlock it in the StartTrader program. DPR is currently available only there.

DPR automatically tracks key factors and continuously calculates your dynamic performance reward ratio—that means how much % of your profit you get as performance reward. This value moves between 50% and 100%, and it’s recalculated separately for each payout. That’s where the word “dynamic” comes from. Makes sense, right?

A quick tip: DPR loves consistent traders. Find a strategy, stick to it, avoid wild swings (big losses followed by even bigger gains, etc.), and don’t overdo it with leverage. Maybe you’ll get that 100% dynamic performance reward ratio, too!

Scaling

If you’re doing well, you can increase the size of your account and your reward ratio.

On ProTrader, you can scale up to a $4 million account with a 95% reward ratio.

Some programs even offer the chance to sign a professional deal after reaching the 3rd scaling level. If you ever plan on going pro, scaling is your safe bet!

Daily loss limit + Maximum loss limit

Watch out for this duo. These are the key metrics you need to watch on any Fintokei account. Breaking them means the end, whether you’re in the challenge phase or going for your third payout.

The daily loss limit is calculated each day based on your EOD (end-of-day) equity. Simply put, it’s based on the equity in your account at midnight (UTC).

Each program has slightly different daily loss limits.

The maximum loss limit is much simpler. It is static and is always calculated from the initial account size.

Profit target

Want to get paid out? You’ll have to show us you can generate profit.

This is the third most important metric after the daily and maximum loss limit. Profit targets vary not only between programs but also between phases. For example, the StartTrader challenge has 3 phases. Each has a different target: 2%, 3%, and 6%. It’s different again for ProTrader and SwiftTrader.

Consistency rules

They’re here to teach you how to trade responsibly.

For example, in the StartTrader challenge, it uses a daily profit cap—that’s how much % of your profit target you can hit in one day.

Consistency rules help prevent traders from completing the challenge on one lucky trade. It’s also great training for sustainable, long-term trading.

We also apply consistency rules to accounts where traders use prohibited trading practices.You can learn more about consistency rules in our FAQ.