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Trading Rules

Profit Target

The minimum percentage or dollar gain required to pass a prop firm evaluation or trigger a payout.

The profit target is the performance threshold you must reach during a challenge phase. It's expressed as a percentage of the account size.

Typical Targets

| Phase | Target Range |

|-------|--------------|

| Phase 1 (Evaluation) | 6-10% |

| Phase 2 (Verification) | 4-5% |

| Funded Payout Minimum | $100-$500 |

Example

A $100K account with an 8% Phase 1 target requires $8,000 in net profit (after commissions) to pass.

Important Notes

  • Net of Fees: Most firms calculate the target after commissions are deducted
  • Minimum Trading Days: You typically must trade a minimum number of days (e.g., 5-10) even if you hit the target early
  • Consistency Rules: Some firms require you to hit the target without any single day accounting for more than 30-40% of total profits

Related Terms

Challenge Phase
The evaluation period where a trader must meet specific profit targets and follow risk rules to qualify for a funded account.
Consistency Rule
A requirement that no single trading day accounts for more than a set percentage of total profits.
Funded Account
A simulated trading account provided by a prop firm after passing their evaluation, where you trade with the firm's capital.

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