A proprietary trading firm provides a defined trading program in which traders demonstrate performance under risk rules. Programs differ: some use simulated evaluations and performance-based rewards, while others deploy firm capital. Read the exact agreement.
| Evaluation | Rule-based performance test |
|---|---|
| Funded stage | Program-specific |
| Key review | Costs, drawdown, payouts |
How it works
Traders purchase or enter an evaluation, follow its rules, and may become eligible for a funded-stage account or performance reward.
- Define the contract and expiration month
- Convert the price move into points and ticks
- Multiply by the contract's verified point or tick value
- Account for fees, liquidity, and risk limits
Worked example
Prop programs are not interchangeable. A two-contract position moving 10 ticks changes by 20 total contract-ticks. The dollar result equals those contract-ticks multiplied by the product's tick value.
Risk and common mistakes
Marketing labels do not replace the contract. Verify drawdown, consistency, prohibited conduct, and payout conditions.
- Confusing margin with maximum possible loss
- Using the wrong micro or E-mini multiplier
- Ignoring expiration, maintenance breaks, or economic events
- Sizing from desired profit instead of predefined risk
Use the related calculator
Model the contract values and risk with your own inputs before planning a simulated trade.
Open calculator →Frequently asked questions
What is the most important point about what is a prop firm?+
A proprietary trading firm provides a defined trading program in which traders demonstrate performance under risk rules. Programs differ: some use simulated evaluations and performance-based rewards, while others deploy firm capital. Read the exact agreement.
Is this information personalized financial advice?+
No. ORIVECT Education provides general educational information. Contract selection, leverage, and risk decisions require your own judgment and current official documentation.
Where can I verify the current contract specification?+
Use the official exchange source linked from the relevant ORIVECT market reference page. Trading hours, margin, and holiday schedules can change.