A prop trading account is a funded account provided by a prop firm that allows traders to trade with the firm’s capital instead of their own. Traders must pass an evaluation or challenge to qualify for funding. Once funded, they can trade and earn a share of the profits while following the firm’s risk management rules

To qualify for a funded prop account, traders typically need to:

• Pass a trading challenge or evaluation process set by the prop firm.
• Follow specific risk management rules, such as daily loss limits and maximum drawdowns.
• Maintain consistent performance over a set period.
  Once the requirements are met, traders receive a funded account and can start trading with the firm’s capital.

The duration of the evaluation process depends on the prop firm’s rules. Some firms allow traders to complete it in as little as a few days, while others have a minimum trading period of several weeks. Some firms even offer instant funding options for traders who want to skip the challenge.

If you fail the challenge, you typically have a few options:

• Retake the challenge by purchasing a new evaluation.
• Some firms offer a free retry if you meet specific conditions, such as not violating any rules.
• If the firm provides a reset option, you can pay a fee to restart the evaluation without purchasing a new account.