Free Guides for Trading Growth / Forex & Prop Trading Slang Glossary
Beginner
12 min read
Forex & Prop Trading Slang Glossary
15+ essential trading terms explained simply
Psychology terms that affect your account
Prop firm-specific jargon you'll hear every day
Real examples for every definition
Get Free Instant Access
Leave your email and open the printable checklist right away.
MyFundedCapital School
Start here checklist
Rules as of 22 Oct 2026. Tick each line before your next session.
| Rule | 1-Step Challenge | 2-Step Challenge | Instant Funded | MFC Stocks | Prediction Markets |
|---|---|---|---|---|---|
| Profit target | 10% | 8% + 5% | — | 7% | 10% |
| Daily loss limit | 5% | 5% | 3% | 2% daily pause | 3% |
| Maximum loss | 10% · trailing | 10% · static | 6% · trailing | 5% · trailing | 6% · trailing |
| Consistency | 35% | 35% | 35% | 35% | 35% |
| First payout | after 7 days | after 14 days | after 14 days | after 14 days | after 7 days |
| Then every | 7 days | 14 days | 7 days | 14 days | 7 days |
| Profit split | 80% → 95% | 80% → 95% | 70% → 80% | 70% → 80% | 75% → 90% |
1. How does a prop firm challenge work?
- The fee is the most you can lose: you deposit no trading capital.
- Two loss limits apply at once, and open losses count toward both.
- Passing starts a review and verification; payouts follow a fixed schedule.
2. What is the difference between a prop firm account and a broker account?
- A broker holds your deposit; a prop firm sells access to an account for a fee.
- At a prop firm the fee caps your loss, but the rules decide how long the account lives.
- A withdrawal is your money; a payout is your share of eligible profit.
3. Which funded account program fits you?
- Your market narrows the choice before any rule does.
- Lower entry price usually means more phases; no phases means tighter limits.
- Compare the daily limit in dollars, not the headline account size.
4. How do you choose a funded account size?
- Rules are percentages, so a bigger account is not easier, only larger.
- Pick the size where 0.5% risk in dollars feels routine to you.
- Small accounts meet payout minimums later; large ones meet the cap sooner.
5. What do prop trading terms like drawdown and equity mean?
- Balance counts closed trades; equity adds open profit and loss.
- Limits are checked on equity, so open losses can end an account.
- Lots and pips turn a risk in dollars into an order size.
myfundedcapital.com/learn/
🔒 No spam. Unsubscribe anytime. We respect your privacy.
2,340+ traders downloaded this guide
Plain-Language Definitions
No textbook fluff. Every term explained the way a funded trader would explain it to a friend — with real numbers and examples.
Prop-Firm Specific Lingo
Understand drawdown, breach, funded account, and evaluation rules in the exact context of MFC challenges.
Psychology Vocabulary
Know what FOMO, revenge trading, paper hands, and bag holding mean — before they cost you your account.
Bogdan Rubtsov
CEO & Founder
“Traders shouldn’t have to beg for capital or guess the rules. So every MyFundedCapital program has its own rulebook, and you can read it before you pay. We ask one question: can you manage risk? If you can, you’re welcome here. If a rule ever feels unclear, that’s ours to fix.”
