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Funded Account

Definition

A trading account provided by a prop firm with real capital that a trader can use to trade and earn profits.

How It Works

After passing an evaluation challenge, traders receive a funded account loaded with the firm's capital. Sizes typically range from $5,000 to $400,000.

The trader keeps a percentage of profits (usually 70-90%) and must follow the firm's risk rules — such as drawdown limits and position sizing — to keep the account. If risk rules are violated, the account may be revoked.

Funded accounts let traders access institutional-level capital without personal financial risk.

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