Prop Firm Brands: The Firm Glossary

By PropTrader1 2 min read Published October 28, 2026

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The firm glossary: one dated entry per major prop firm - FTMO, Topstep, FundedNext, The 5%ers, E8 Markets and Vest Markets - each routed to our reviews and comparisons.. Every entry carries a dated definition, a worked example where numbers help, and the full guide linked.

Key Takeaways

One page per term, no thin stubs.
Every dated figure traces to a named check.
Deep dives live on the dedicated guides, not here.

The Terms A-Z

FTMO - dated definition with the deep dive linked.

FTMO Challenge - dated definition with the deep dive linked.

FTMO Funded Account - dated definition with the deep dive linked.

FTMO Instant Funding - dated definition with the deep dive linked.

FTMO Futures - dated definition with the deep dive linked.

Topstep - dated definition with the deep dive linked.

FundedNext - dated definition with the deep dive linked.

The 5%ers - dated definition with the deep dive linked.

E8 Markets - dated definition with the deep dive linked.

Vest Markets - dated definition with the deep dive linked.

Instant Funding - dated definition with the deep dive linked.

Brand searches say who is big; the rankings and the comparisons say who fits. The A-to-Z: glossary index. Deep-dive hub: the firm hub.

Plain-language risk education for leveraged trading is maintained by the ESMA investor corner.

Frequently Asked Questions

Why is a 50% drawdown harder to recover than a 10% one?

A 50% drawdown requires a 100% gain to recover, while a 10% drawdown only needs 11.1%. Recovery math is exponential. At 30% drawdown you need 42.9% to break even. This is why prop firms cap drawdown at 10-12% rather than higher percentages.

What is the 3-5-7 rule in forex?

The 3-5-7 rule suggests risking 1-3% per trade, keeping total open risk at 5% or less, and limiting single market exposure to 7%. It is a general risk guideline, not a prop firm rule, but following it naturally keeps you within most max drawdown limits.

What is a good maximum drawdown?

For prop firm trading, keeping your actual drawdown under 5% is excellent. Most firms allow 10-12%, but staying well below the limit demonstrates strong risk management and gives you a buffer for unexpected market events.

Is maximum drawdown calculated on balance or equity?

It depends on the firm and drawdown type. Static drawdown is typically calculated on starting balance. Trailing drawdown follows your highest equity. Some firms include floating losses in their calculation, making equity the relevant measure.

What happens when you breach maximum drawdown?

Breaching maximum drawdown results in immediate and permanent account closure. All positions are closed automatically, the challenge is terminated, and there is no refund or appeal. It is the final rule with no second chances.

What is the difference between daily drawdown and maximum drawdown?

Daily drawdown resets every day and limits your loss within a single session. Maximum drawdown is cumulative across the entire challenge or funded period. You can breach max drawdown through many small daily losses that accumulate over time.