Basically Futures

STAGE 6 · LESSON 3 OF 5

Understanding prop evaluations

A retail evaluation is a contract with a provider, not automatically a job or brokerage account.

THE IDEA~8–12 MINUTES

Understand it

Retail prop evaluation providers use different business models, rule definitions and simulated/live arrangements. They may charge evaluation, reset, activation or platform fees. Drawdown calculation, minimum days, consistency limits, permitted products, payout conditions and cancellation terms can materially change results. Before paying, examine the firm's official current rules, agreements and recent disclosures; avoid assuming promotion banners explain the complete product.

WORKED EXAMPLE

Two accounts may advertise the same headline profit target but calculate drawdown differently. A trailing intraday limit can fail during a profitable peak-to-retracement sequence that passes an end-of-day model.

Watch for this misconception

Assuming 'funded' always means trading real capital on a regulated brokerage account.

PRACTICE EXERCISE

List five contract terms you would verify before purchasing any evaluation.

Readiness checklist ↗
KNOWLEDGE CHECK

Why is the headline profit target insufficient to compare evaluations?

Select the best answer

Check the sources

Hypothetical educational examples. Verify current product specifications and rules before making decisions.