Account Size

Funding Models

Account size is the nominal capital allocated to a funded account. It determines position limits and drawdown thresholds.

Account size is the nominal capital allocated to a funded account. Typical retail prop-firm account sizes range from $10k to $400k, with some firms offering scaling up to $2M.

For evaluation firms, the account size is almost always notional — the firm is not depositing that capital into a real brokerage account; it is setting the reference value against which drawdown rules, profit targets, and payouts are calculated. The trader''s actual exposure is limited to the challenge fee.

Account size matters most for proportional rules: a 5% drawdown on $100k is a $5,000 buffer; the same 5% on $25k is $1,250. Position sizing, buying power, and per-trade risk should always be calculated against account size, not against the challenge fee paid.

Keep going

Put this term to work