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Prop Firm Rules Explained

Drawdown, daily loss limits, consistency rules, news trading, EAs and copy trading — the fine print that decides whether you keep your account.

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16 guides in this collection

Rules & mechanics

Why Funded Accounts Get Breached: The Six Real Causes

Ranked by how often they actually end accounts, with the specific fix for each. None of the top three is a strategy problem.

· 2 min read
Rules & mechanics

How Much to Risk Per Trade on a Funded Account

Work backwards from the drawdown, not forwards from the target. A simple table that turns your firm's maximum loss into a defensible risk-per-trade number.

· 2 min read
Rules & mechanics

The 8 Prop Firm Rules That Actually Decide Whether You Get Paid

Rule sheets run to thousands of words. Eight of them determine the outcome. What each one does, what good looks like, and the question to ask about each.

· 3 min read
Rules & mechanics

Trading Hours, Rollover and Session Rules on Funded Accounts

Your daily loss limit runs on the broker's clock, not yours. Why server time, rollover and session boundaries breach more accounts than traders expect.

· 2 min read
Rules & mechanics

Prop Firm Leverage: How Much You Get and How Much to Use

High leverage is a marketing headline, not an advantage. What 1:100 actually permits, and why your real constraint is the daily loss limit, not the margin.

· 2 min read
Rules & mechanics

Minimum Trading Days: What They Cost You and Why They Exist

A minimum trading day requirement can add weeks between passing and getting paid. What the rule is for, how firms count a day, and where FundedAxe sits.

· 2 min read
Rules & mechanics

Prop Firms With No Time Limit: Why Deadlines Break Traders

A 30-day expiry turns a calm target into a deadline, and deadlines cause overtrading. What removing the clock actually changes about how you trade.

· 2 min read
Rules & mechanics

Copy Trading at Prop Firms: Where the Line Is Drawn

Copying your own trades across your own accounts is usually fine. Copying someone else's, or coordinating with other traders, is not. The line explained.

· 2 min read
Rules & mechanics

Hedging, Arbitrage and the Strategies Every Prop Firm Bans

Four techniques void accounts at essentially every firm. What each one is, why it is prohibited, and the legitimate strategies that get confused with them.

· 2 min read
Rules & mechanics

EAs, Bots and Algo Trading: What Prop Firms Actually Allow

Most firms permit EAs and prohibit a specific list of exploits. Here is where the line usually sits, and the four behaviours that get accounts voided.

· 2 min read
Rules & mechanics

Growth Targets: Why 4% Can Be Harder Than 8%

The target is the number everyone compares, and the least useful one. Why the drawdown attached to a target matters more than the target itself.

· 2 min read
Rules & mechanics

News Trading at Prop Firms: Who Allows It and What to Watch

News restrictions vary wildly and are easy to breach by accident. What a typical restriction actually forbids, and how to check before you buy.

· 2 min read
Rules & mechanics

Consistency Rules: The Clause That Voids Passing Accounts

A consistency rule caps how much of your gain can come from one day or one trade. Here is how they are worded, why they exist, and how to trade around one.

· 2 min read
Rules & mechanics

Daily Loss Limits: Why They Breach More Accounts Than Anything Else

The daily loss limit ends more evaluations than max drawdown ever does. How EOD and intraday measurement differ, and how to trade comfortably inside one.

· 2 min read
Rules & mechanics

Balance-Based Drawdown: What It Is and Why It Favours You

Balance-based drawdown measures your loss against realised balance rather than floating equity. The practical difference is bigger than the wording suggests.

· 2 min read
Rules & mechanics

Static vs Trailing Drawdown: The Rule That Decides Your Fate

The most important and most misunderstood rule in prop trading. Worked examples showing how a trailing drawdown can breach an account that is still up 8%.

· 4 min read

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