Prop Trading Affiliate Terms

A challenge purchase is the primary conversion event in prop trading affiliate programs -- when a trader buys a funded account evaluation or challenge from a prop trading firm.

A trading account provided by a proprietary trading firm to a trader who has passed an evaluation challenge, allowing them to trade with the firm capital under defined risk rules.

The first challenge or evaluation purchase made by a trader referred through an affiliate link or coupon code, used as the primary conversion event in prop trading partner programs.

The process of crediting an affiliate for subsequent purchases made by a trader they originally referred, beyond the initial conversion event.

An affiliate who promotes products through content creation on platforms like YouTube, TikTok, Instagram, or podcasts, typically using coupon codes rather than traditional tracking links.

An affiliate or partner program operated by a proprietary trading firm to acquire new traders through external partners, influencers, and affiliates who promote challenge purchases.

The percentage of trading profits that a funded trader keeps after passing a prop firm evaluation. Profit splits are a primary conversion driver and directly influence affiliate promotion strategies.

An evaluation phase is a structured assessment period in prop trading where traders must meet defined profit targets and risk management rules within a set timeframe to qualify for a funded trading account.

A reset fee is a discounted payment a trader makes to restart an evaluation challenge after failing, allowing them to re-enter the same challenge tier without purchasing a full new challenge at the original price.

Drawdown is the maximum loss a trader is allowed to incur -- either in a single day or cumulatively -- before their challenge or funded account is terminated by the prop trading firm.

A payout certificate is a verified document or screenshot showing that a prop trading firm has successfully paid out profits to a funded trader. It serves as social proof in affiliate marketing.

A challenge fee is the payment a trader makes to enter a prop firm evaluation challenge, often serving as the basis for affiliate commission calculations in prop trading programs.

A scaling plan is a structured program where funded traders receive progressively larger account balances based on consistent performance, affecting long-term affiliate value calculations.

A prop firm affiliate program is a partner or referral program operated by a proprietary trading firm, typically structured around commissions on challenge purchases, resets, and scaling upgrades.

Trailing drawdown is a prop firm risk rule where the maximum loss floor rises with account profits, permanently tightening the allowable loss threshold.

A profit target is the percentage gain a trader must achieve during a prop firm evaluation phase to qualify for a funded account.

A daily loss limit is the maximum amount a trader can lose in a single trading day before their account is suspended or failed in a prop firm evaluation.

A consistency rule limits how much of a funded or challenge account's total profit can come from a single trading day, enforcing disciplined, repeatable strategy.

In prop trading, CPA pays per challenge purchase while RevShare pays a recurring cut of challenge fee revenue. Each model suits different program structures and affiliate types.

Instant funding is a prop trading model where traders receive a funded account immediately without completing an evaluation challenge first.

Instant funding provides immediate capital access without testing, while evaluation challenges require traders to pass profitability and risk tests first.

Challenge pass rate is the percentage of traders who successfully complete a prop firm evaluation and receive a funded account.

Drawdown sets a fixed loss limit from the starting balance, while trailing drawdown moves upward with profit, creating a dynamic floor that locks in gains.

A prop firm payout is the distribution of trading profits from a funded account to the trader, based on the firm's profit split ratio and payout schedule.

A two-phase evaluation is a prop firm challenge model requiring traders to pass two sequential stages with distinct profit targets before receiving a funded account.

One-step challenges require passing a single evaluation phase. Two-step challenges split the evaluation into two phases with different targets and rules.

Max allocation is the highest amount of funded capital a prop trading firm will assign to a single trader, typically reached through scaling after consistent profitable performance.

A prop firm challenge is a paid evaluation process where traders must meet profit targets and risk limits within a simulated account to qualify for a funded trading account.

Minimum trading days is a prop firm evaluation rule requiring traders to execute trades on a set number of distinct calendar days before passing a challenge phase.

A news trading restriction is a prop firm rule that limits or prohibits traders from holding open positions during major economic news events.

Profit factor is a trading performance metric calculated by dividing gross profits by gross losses, indicating overall strategy profitability.

Simulated trading is a practice environment where traders execute orders using virtual capital under real or near-real market conditions.

Simulated trading uses virtual capital for evaluation. Live trading uses real capital with actual market risk. The distinction affects prop firm structures and affiliate payouts.

Prop firm risk rules are the mandatory constraints traders must follow during evaluation and funded phases, including drawdown limits, daily loss caps, and consistency requirements.

A funded trader is someone who has passed a prop firm evaluation and been allocated simulated capital to trade, sharing profits with the firm according to an agreed profit split ratio.

Prop firms provide individual traders with simulated capital and take a share of profits. Hedge funds pool investor capital and are managed by professional fund managers. They serve different markets with different risk models.

A prop firm white label is a turnkey platform that allows entrepreneurs to launch a branded proprietary trading firm using third-party infrastructure.