Prop Firm Challenge

What is a prop firm challenge?

A prop firm challenge is an evaluation stage with a rule sheet for one named program. Many online programs use simulated accounts. You must meet every condition that applies and avoid the breaches listed by that program.

Reaching the profit target alone may not mean that you have passed.

What should you copy from the rule page?

1. Profit target: the result required for the phase.
2. Daily loss limit: the daily floor and how the firm calculates it.
3. Overall loss limit: the account floor and whether it moves.
4. Time or trading-day condition: any minimum days, time limit or phase timing.
5. Other program rules: prohibited practices and conditions such as a consistency rule, when applicable.

A fictional $100,000 XAUUSD example

Imagine you trade an XAUUSD breakout during the New York session and your account reaches the stated profit target. Before you call the challenge passed, check the other four lines: daily loss, overall loss, trading days or time, and every other program condition.

The result may satisfy the target while another required condition is still incomplete. The firm’s current dashboard and rule page decide the status.

Two current examples

Checked 8 October 2026.

• FTMO 2-Step: the checked page lists a 10% target for the Challenge and 5% for Verification.
• FundedNext Stellar 2-Step: the checked page lists 8% for phase 1 and 5% for phase 2, with no time limit.

These are examples from two named programs. They are not standard percentages for the industry. Rules can change, so check the exact product before you pay or trade.

What happens after you pass?

The next step depends on the program. It may include another phase, identity checks, an agreement or a funded account stage. Passing does not by itself prove that the next account uses live capital or that a reward is guaranteed.

What should you do next?

Open the exact current program rules and write the five checks before your first trade. The prop firm rules guide explains the wider rule review, and the challenge readiness guide helps you prepare your own process.