The daily loss reset is the point in time at which a program’s daily loss limit clears and starts a fresh measurement window. When the reset occurs, and whether the limit measures equity or balance, determines which trades fall in which window — a detail that directly affects trade timing and overnight position management.

The drawdown floor is the absolute equity level below which an account cannot fall without triggering a breach — the hard lower boundary produced by the program’s drawdown model. Under static models it is fixed; under trailing models it rises with the account and never moves back down, meaning available risk room shrinks as the…

A payout cycle is the schedule and conditions under which a funded trader can request withdrawal of simulated performance rewards — defining frequency, minimum amounts, and eligibility conditions. The headline split percentage means little without knowing when payouts are available and how long processing takes.

A news trading restriction is an evaluation rule prohibiting or limiting trades during scheduled high-impact macroeconomic releases — NFP, FOMC, CPI, and similar events. It exists because slippage during these windows can breach daily loss limits regardless of stop placement, making normal risk-management mechanics unreliable.

A high-water mark is an account-tracking mechanism recording the highest equity or balance level reached, used as the reference for payout calculation and — under trailing drawdown models — for determining where the drawdown floor sits. Understanding which metric it trails, and whether it resets, determines both payout eligibility and available risk room.

The verification phase is the second stage in a two-phase funded evaluation, designed to confirm that Phase 1 performance reflects a repeatable approach rather than a single fortunate session. It carries a lower profit target than Phase 1 but the same risk limits — the reduced target makes it shorter in expectation, not more forgiving…

The evaluation phase is the first stage of a funded trader program, designed to verify a trader can hit a defined profit target while respecting all risk limits. It tests not just profitability but the ability to be profitable within a defined risk framework — simultaneously hitting the target without breaching the daily loss limit…

A take-profit is an order designed to close a position automatically at a defined target price, locking in a gain before a reversal can erode it. In trailing-drawdown evaluations it also serves a structural purpose: converting floating equity into realised balance before the trade can consume drawdown room without closing profitably.

A stop-loss is a risk-control order designed to close a position automatically when price reaches a defined level, capping the loss on that trade before it can grow further. In funded evaluations it must be sized and placed so the resulting equity drawdown stays within both the daily loss limit and maximum drawdown.

Position sizing is a risk-management calculation designed to determine how many units of an instrument to trade so that a defined stop-loss distance results in a specific dollar loss — typically expressed as a fixed percentage of account equity. It is the primary lever connecting a trader’s risk tolerance to actual trade mechanics.