A Checklist for Understanding Prop Account Rules

Account size is only one part of a prop trading agreement. The loss and payout rules matter just as much.

Write down the exact definitions

Identify the daily loss calculation, maximum drawdown, trailing method, reset time and contract limits. Note whether unrealized values are included. Do not assume a headline account size represents capital you can lose.

Separate eligibility from performance

Profit targets, minimum days, consistency limits and payout requirements can apply independently. A positive P&L does not automatically mean a payout is available.

Check restrictions before trading

News restrictions, allowed instruments, holding periods and scaling rules may change how you operate. Use the current firm agreement as the authority, not an old spreadsheet or a generic template.

Keep a conservative view of incomplete data

An imported journal cannot monitor a position it never received. When current exposure or intraday equity is missing, treat the account-health view as incomplete rather than as permission to trade.