Introduction to challenges

Proprietary trading, also known as "prop trading", involves using capital provided by prop trading firms rather than the trader's private funds. In this case, traders benefit from earning profit from their trading activities without risking their own funds.

To evaluate traders' skills and capabilities, prop trading firms conduct challenges that involve specific trading objectives and performance metrics that traders must meet to qualify for access to trade using the firm’s capital. Upon successful challenge completion, a trader is provided with a funded account with a certain balance on it. Profits earned from trading on this account are usually divided between the trader and the prop trading firm.

In the Back Office, you can create and configure trading challenges by navigating to Investment platform in the main menu, expanding the desired platform instance (such as MT4, MT5, or cTrader), and clicking Prop trading.

Prop trading in the main menu
Prop trading in the main menu

Key points

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