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Home/Glossary
A–Z GLOSSARY

Prop trading, in plain English.

The vocabulary of an evaluation — drawdown, consistency rules, reward splits and simulated capital — defined the way it is actually applied to your account.

Definitions here match the Leofins rule book exactly, so a term means the same thing in the glossary, in your dashboard and in the objectives table.

Terms are grouped by the rule they belong to: prop firm mechanics, risk limits, trading costs and payouts.

20
Terms defined
4
Categories
1:1
Matches the rule book
Free
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A–Z

Prop trading terms, defined plainly

Twenty terms you will meet inside a Leofins challenge — the rule they belong to and what they mean for your account.

ACDEFLMPRST

Account size

PROP FIRM

The simulated starting balance of a challenge or funded account: $10,000, $25,000, $50,000 or $100,000 at Leofins.

Consistency rule

PROP FIRM

A limit on how much of a payout's profit may come from a single day. At Leofins this is the 40% Best Day rule, a payout eligibility condition rather than an evaluation objective.

Daily loss limit

RISK

The maximum equity you may lose in one trading day, measured from the day's starting balance. Breaching it ends the account.

Drawdown

RISK

The distance between your equity peak and the current equity, expressed as a percentage of the account size.

Equity

TRADING

Balance plus the floating profit or loss of all open positions. Objectives are measured on equity, not balance.

Evaluation phase

PROP FIRM

The simulated stage where you prove you can hit a target inside the risk rules before receiving a funded account.

Funded account

PROP FIRM

A simulated account that generates real reward payouts, granted after you pass the evaluation.

Leverage

TRADING

The ratio between position size and account equity. Leofins caps leverage per asset class, up to 1:100 on FX.

Lot

TRADING

The standard unit of position size. One standard FX lot equals 100,000 units of the base currency.

Max total loss

RISK

The hard floor on the account for the whole challenge. At Leofins it is static, measured from the initial balance only and never trails the equity high.

Payout

PAYOUTS

A reward released from a funded simulated account. Leofins pays on demand, typically within 14 hours.

Profit target

PROP FIRM

The percentage gain required to pass an evaluation phase: 8% on Edge 1-Step, 7% then 4% on Core 2-Step, or 6%, 4% then 4% on Starter 3-Step.

Reward split

PAYOUTS

The share of simulated profit paid to the trader, from 85% up to 95% after six successful payouts.

Scaling plan

PROP FIRM

Automatic increases to your reward split and simulated capital after consecutive profitable payout cycles.

Slippage

TRADING

The difference between the expected and the executed price, widest around high-impact news.

Spread

TRADING

The gap between bid and ask. It is the main trading cost on Leofins accounts alongside commission.

Swap

TRADING

The overnight financing charge or credit on a leveraged position. Zero on crypto pairs at Leofins.

Trailing drawdown

RISK

A loss limit that follows your equity high, tightening the floor as the account grows.

Trading days

PROP FIRM

Separate calendar days on which at least one position was opened. Some plans require a minimum count.

Simulated capital

PROP FIRM

Virtual balance used for every Leofins account. No client money is ever deposited or traded.

Term missing? The full rule set lives on trading objectives.
FAQ

Glossary FAQ

A virtual balance used on every Leofins account. Rewards are real, but no client money is ever deposited or traded in a live market.

Static drawdown is measured from your initial balance and never moves. Trailing drawdown follows your equity high, tightening as the account grows.

It is the percentage of simulated profit paid to you, from 85% at the start up to 95% after six payouts.

The trading objectives page lists every limit per programme, and your dashboard shows live values against each one.

EXPLORE MORE

More trader resources

BlogNewsTrading academyMarket analysisPayout reportsEconomic calendar

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