How a prop firm challenge works, step by step
Almost every challenge has the same three rules: a target, a daily loss limit and an overall loss limit. Here's each one.
The 3 rules
Target: the profit you need to pass a phase. Think 8% or 10%.Daily loss limit: the most you can lose in a day. Think 4% or 5%.Max loss: the most the account can drop overall. Think 8% or 10%. Touch either limit and it's over.Phases
One, two or three phases. On a 2-Step, phase one usually wants 8–10% and phase two 5%. Clear the last phase, get funded.
Some accounts skip the test altogether: see instant funding.
Minimum days, time limits
Some firms want a minimum number of trading days, like 3 or 4. Time limits are mostly gone, but watch for accounts closed after 30 days of no trading.
You passed. Now what?
The firm checks your trades and asks for KYC: usually your passport, driver's licence or national ID plus proof of address. Then you get the funded account: same loss rules, no target. Every profit gets split.
Your questions, answered
How long does it take?
Up to you. With no time limit, most people take two weeks to two months.
What if I fail?
You lose the fee. Some firms give a discount or free retry.