A one-time fee charged when transitioning from a passed evaluation to a funded trading account.
Traders must be aware of this fee as it affects their total cost of getting funded. Some firms charge high activation fees, which can reduce the initial capital available for trading.
A trader passes a $50,000 evaluation and must pay a $150 activation fee to access their funded account before trading live capital.
The number of phases a trader must complete to qualify for a funded account. Each phase typically includes meeting profit targets while adhering to risk rules.
The initial amount of capital allocated to a trading account in an evaluation or funded account.
The specific profit amount a trader must achieve to pass an evaluation or progress to a higher account level.
The maximum amount a trader is allowed to lose in a single trading day. Exceeding this limit typically disqualifies the trader. There are different types of loss limits, so it is important to understand the type that applies to a chosen plan.
The maximum permissible loss from the starting balance or peak balance. Breaching the drawdown limit ends the evaluation or funded account.