Prop firm challenge rules: target, limits, phases
Nearly every challenge has three main rules: profit target, daily loss limit and maximum loss. Here is what each one means.
Main rules
Profit target: the profit you must make to pass a phase. Example: 8% or 10%.Daily loss limit: the most you can lose in one day. Example: 4% or 5%.Maximum loss: the most the account can fall in total. Example: 8% or 10%. If you hit either limit, the challenge ends.Phases
A challenge has one, two or three phases. On a 2-Step, phase 1 often needs 8–10% and phase 2 needs 5%. After the last phase you get the funded account.
Instant accounts have no challenge. Compare in 1-Step vs 2-Step.
Minimum days and time limits
Some firms need a minimum number of trading days, for example 3 or 4. Time limits are now rare. Some firms close accounts with no trade for 30 days.
After you pass
The firm checks your trades and asks for KYC: usually your CNIC or passport plus proof of address. Then you get the funded account. Same loss rules, no profit target. Profits are shared at the agreed split.
FAQ
How long does a challenge take?
You decide. With no time limit, most traders need two weeks to two months.
What if I fail?
You lose the fee. Some firms offer a discount or a free retry.