A risk-reward ratio is a trade-planning metric designed to compare what a trade risks against what it targets — a 1:2 ratio risks one unit (the stop distance) to target two (the take-profit distance). The ratio only means something next to a win rate: at 1:2, anything above a 33.4% win rate is profitable before…

Minimum trading days is an evaluation requirement designed to ensure a pass reflects repeated performance rather than a single session — a trader must place qualifying trades on at least N distinct days before the phase can be completed. The details that matter: what counts as a trading day (any executed trade, or a minimum…

A scaling plan is a program mechanism designed to increase a funded trader’s simulated account size in defined steps as they meet sustained performance milestones — for example, a 25% size increase after consecutive profitable months within the rules. Scaling plans are where the long-term economics of a funded relationship actually live: the difference between…

A swap is a financing cost or credit designed to account for the interest-rate difference between the two currencies in a position held overnight, applied at the daily rollover. Swaps matter to evaluation traders in two ways. First, as a cost: negative swap on a held position is deducted from equity, which means a position…

Slippage is an execution effect designed into how markets work: the difference between the price you requested and the price you actually received, caused by price movement between order and fill. Slippage is usually negligible in liquid sessions and severe around high-impact news, where it can fill a stop-loss far beyond its level — turning…

The spread is a trading cost designed into every quote: the difference between the bid (sell) price and the ask (buy) price, paid implicitly the moment a position opens. Spreads widen during low-liquidity hours, around major news releases, and at the daily rollover — the same windows where daily-limit breaches cluster. For evaluation traders the…

A pip is a price-movement unit designed to standardise how currency-pair changes are measured — for most pairs, a movement in the fourth decimal place (0.0001); for JPY pairs, the second (0.01). Pip value converts price movement into money: on one standard lot of EURUSD, one pip is worth roughly $10, scaling linearly with lot…

A lot is a position-size unit designed to standardise trade volume — in forex, one standard lot is 100,000 units of the base currency, with mini (0.1) and micro (0.01) fractions. Lot size is the lever that connects a stop-loss distance to a money amount, which makes it the core variable in evaluation risk management:…

Margin is an account mechanism designed to reserve a portion of capital as collateral for an open position — the deposit the platform holds while the position runs. Used margin rises with every open position; free margin is what remains available for new positions and for absorbing floating losses. When floating losses consume free margin…

Leverage is a trading mechanism designed to let a position control more notional value than the account’s capital — 1:100 leverage means a $1,000 margin controls a $100,000 position. In evaluations, leverage is a rule parameter, not a free choice: programs cap leverage per asset class, and crypto instruments typically carry far lower caps than…