Prop + futures terms, plain English.

If something on the site isn't defined here, it should be. Email me what's missing.

Trailing drawdown

Loss cap that follows your highest balance up. Punishes you for giving back profits.

Static drawdown

Loss cap fixed at the starting account balance. Cushion stays even after you profit.

Intraday drawdown

Drawdown calculated on open P&L during the session (punishes deep dips).

EOD drawdown

Drawdown only counted at the end-of-day balance. More forgiving.

Consistency rule

Limits how much of your profit can come from one day (e.g. 30%). Forces multi-day profit patterns.

Daily loss limit

Hard stop — if you lose more than X in one day, account is blown.

Profit target

Dollar amount you need to reach to pass the challenge or qualify for payout.

Activation fee

One-time or monthly fee to go live after passing. Not always present.

Payout split

Share of profits you keep vs what the firm keeps. 80/20, 90/10, 100% during initial threshold, etc.

Scaling plan

Rules for growing your account size over time (more contracts as you hit milestones).

PA (Performance Account)

The live-funded account you get after passing the evaluation.

Evaluation / Challenge

The demo-account pass phase — hit the profit target without breaking rules.

Reset

Restart a failed evaluation for a discounted fee (or free, some firms).

Tick / Point / R:R

Tick = smallest MNQ price move (0.25). Point = 4 ticks. R:R = reward-to-risk ratio on a trade.

Orderflow

Analysis of actual transactions (bid/ask volume, delta, tape) to read intent. The bot in /community uses this.

VWAP

Volume-Weighted Average Price — the “fair price” line intraday traders often bounce off.

FVG (Fair Value Gap)

ICT concept — a price gap between candles that often gets retested.

Absorption

Large resting orders soaking up aggressive flow — a reversal signal.