Glossary · Prop-firm trading
Equity and balance
Balance is what the account holds with everything closed; equity is balance plus the open positions' running result.
Loss limits are measured on equity at most firms that publish the rule, so an open loss counts before it is closed. Profit targets are usually measured on closed balance. A daily limit measured from the higher of the two at the reset is the stricter convention, and the one Propcockpit's Baseline uses.
What each firm measures the daily line on
| Firm | What the firm says | Source |
|---|---|---|
| FTMOFTMO Challenge, 2-step | Equity ("Balance + Open Positions P/L ± Swaps – Commissions") against the balance recorded at 00:00 CE(S)T, less a fixed 5% of the initial capital - not 5% of that day's balance. On the first day the balance used is the initial capital itself. The maximum is static: the initial capital less 10% of it, and it never moves. | Programme pageChecked |
| FTMOFTMO Challenge, 1-step | Equity against the balance recorded at 00:00 CE(S)T, less a fixed 3% of the initial capital - not 3% of that day's balance. On the first day the balance used is the initial capital itself. The maximum is "an end-of-day trailing limit": the highest 00:00 balance of any preceding day, or the initial capital if higher, less 10% of the initial capital; it only ever rises | Programme pageChecked |
| FundedNextStellar 2-Step | The initial balance: "Your account must not lose more than 5% of the initial balance in a single day." The firm's worked example adds the day's profit to that: "($100,000 x 0.05 + $2,000) = $7,000". | Measured onChecked |
| FundedNextStellar 1-Step | The initial balance: "Your account must not lose more than 3% of the initial balance in a single day." | Programme pageChecked |
| FundingPips2 Step Standard | "5% of the higher value between your opening balance or opening equity for that day." Floating and closed P&L both count. | Programme pageChecked |
| Alpha Capital GroupAlpha Pro 10% | "Max Daily Drawdown (balance-based)", per the firm's plan article. | Programme pageChecked |
| Alpha Capital GroupAlpha Pro 8% | "Max Daily Drawdown (balance-based)", per the firm's plan article. | Programme pageChecked |
| Alpha Capital GroupAlpha One 10% (1-step) | "Max Daily Drawdown (calculated over the highest end-of-day balance or equity, whichever is greater)", in the firm's own words. The maximum trails a high-water mark and then stays fixed at the initial balance once profit reaches the plan's drawdown percentage. | Programme pageChecked |
| FintokeiProTrader, 2-phase | Equity, per the firm's programme table. A -3% cap on open-trade risk applies as well. | Programme pageChecked |
| FintokeiStartTrader, 3-phase | "Daily loss limit calculated from Start of the day equity". A -3% cap on open-trade risk applies as well. | Measured onChecked |
Each firm’s own page is the one that counts; the firm pages here carry the whole table.