A set milestone where a trader can increase their contract size or risk, typically based on achieving profits.
Prop firms enforce scaling thresholds to ensure traders increase risk only after proving profitability. Understanding these rules helps traders plan their growth strategically.
A trader starts with a 2-contract limit in a $50,000 account. Once they reach $55,000, the scaling threshold allows them to increase to 4 contracts, enabling larger trade sizes.
A financial instrument is the entity being bought and sold while trading.
A firm that provides traders with capital to trade financial instruments, such as futures. Traders retain a percentage of the profits they generate, while the firm assumes the risk.
The specific account or evaluation package offered by the prop firm. Plans vary in account size, evaluation difficulty, profit targets, and rules.
A smaller-sized futures contract (e.g., 1/10th the size of a standard contract), which allows for more flexible risk management.
The standard-sized futures contract traded in the market.