Question 1

What is the difference between real and simulated capital?

Accepted Answer

Real capital is actual money in a live brokerage account where orders fill in the real market and profit and loss is settled for real. Simulated capital is a balance inside a demo or simulation environment, where fills happen against simulated prices and the result is tracked by the firm's software.

Question 2

Does a funded account mean I am trading real money?

Accepted Answer

Not always. Many retail prop firms keep funded accounts on simulated capital and pay traders out of their own revenue. The word funded describes a status under the firm's rules, not a guarantee that live money sits behind every trade.

Question 3

Where does a prop firm payout actually come from?

Accepted Answer

It depends on the model. On real capital, payouts can come from genuine market profits the firm earned on your trades. On a fully simulated or sim funded account, your share is paid from the firm's revenue, much of which comes from evaluation fees and resets.