Question 1

What is a prop firm evaluation?

Accepted Answer

An evaluation, also called a challenge, is a paid test phase where you trade a simulated account and try to reach a profit target without breaking the firm's loss rules. Passing it is what unlocks a funded account.

Question 2

Does a funded account mean I am trading real money?

Accepted Answer

Not always. Many retail firms keep funded accounts on simulated capital and pay traders from their own revenue. Whether real money sits behind a trade depends on the firm, so it is worth reading the fine print.

Question 3

What ends an evaluation?

Accepted Answer

Breaking a hard rule, usually the maximum drawdown floor or the daily loss limit, ends the attempt no matter how the account was doing before. Reaching the profit target without a breach is what moves you forward.