Rule sheets are written in a specific dialect. Misreading one term is how traders breach accounts they thought were safe. These are the definitions that matter.
Account and evaluation terms
| Term | What it means |
|---|---|
| Evaluation / challenge | The simulated test you pass to reach a funded account. |
| Phase | One stage of an evaluation, each with its own growth target. |
| Funded account | The simulated account you trade after passing, with a reward split. |
| Breach | Violating a rule, which ends the account. |
| Activation fee | The programme fee — on pay-after-pass models, charged only when you pass. |
| Reset | Restarting a failed evaluation, usually for a fee. |
| Scaling plan | The schedule by which a funded account size increases with performance. |
Risk and drawdown terms
| Term | What it means |
|---|---|
| Drawdown | How far the account has fallen from a reference point. |
| Static (balance-based) drawdown | Maximum loss fixed from your starting balance. Never moves. |
| Trailing drawdown | Maximum loss that follows your equity or balance upward as you profit. |
| Daily loss limit | The most you may lose in one trading day. |
| EOD (end of day) | Daily loss measured on the closing balance rather than intraday equity. |
| Intraday equity drawdown | Daily loss measured on unrealised equity — far stricter than EOD. |
| Max loss | The total loss that ends the account. |
| Buffer | The distance between your current balance and the breach level. |
Rules and restrictions
| Term | What it means |
|---|---|
| Growth target | The gain required to pass a phase. |
| Minimum trading days | The number of days you must trade before a pass or payout counts. |
| Consistency rule | A cap on how much of your total gain may come from a single day or trade. |
| Time limit | A deadline for completing a phase. FundedAxe has none. |
| News trading restriction | A ban on holding positions around scheduled economic releases. |
| Weekend holding | Whether positions may be carried through the weekend. |
| Hedging | Holding opposing positions in the same instrument. |
| Latency / tick scalping | Exploiting feed delays. Prohibited essentially everywhere. |
| Copy trading | Mirroring trades across accounts, often restricted to your own accounts. |
| EA (Expert Advisor) | An automated strategy running on MetaTrader. |
Rewards and payouts
| Term | What it means |
|---|---|
| Reward split / profit split | Your share of the account's performance. |
| Reward cycle | How often you may request a payout. |
| First eligibility | The earliest date you may request your first reward. |
| Fee refund | Return of the evaluation fee, typically after a set number of rewards. |
| Payout method | How rewards are transferred — bank, crypto or processor. |
Frequently asked questions
What does EOD drawdown mean?
End-of-day drawdown measures your daily loss against the closing balance rather than intraday equity. An intraday dip that recovers before the day closes does not breach an EOD limit.
What is a consistency rule at a prop firm?
A cap on how much of your total gain may come from a single day or trade — for example, voiding a pass if one day produced more than 40% of the profit. FundedAxe publishes its thresholds: 50% on the 1-Step evaluation, 30% on the 1-Step Pro, and none on the 2-Step or 3-Step.
FundedAxe evaluations and funded accounts are simulated. Traders do not trade real client capital; rewards are paid on simulated performance under the terms of the FundedAxe trader agreement.