Prop firm rules, explained

Most accounts fail on a rule, not on a bad strategy. Start with the one that closes most accounts, and see how the same trades end differently.

Drawdown type
What happens
$48K$49K$50K$51K$52KDay 1Day 2Day 3Day 4

Your account Loss floor

Still open: the account ended at $50,500, with the floor at $48,400.

A big intraday gain that isn't banked, then a red day. Example: $50,000 account, $2,000 max loss, floor stops rising at the starting balance. Firms set their own numbers.

Reports and research

Our industry reports, free to read online or download as PDF.

All reports
Cover of The State of Prop Trading 2026
Industry report

The State of Prop Trading 2026

What a prop firm evaluation really costs, which rules decide it, what the contracts allow and how much of the industry's money anyone can verify. 86 firms, 4,561 plans, 44 sourced closures.

  • 44 pages
  • PDF, 9.6 MB
  • Data as of November 5, 2026

Two live databases sit behind the reports. The prop firm closures page lists every sourced closure, pause and platform loss since 2024, and the regulation tracker logs what regulators and platform vendors have said and done.

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