Eval Explained

prop-firm

Definition

Evaluation account / challenge.

Explanation

An eval is the first stage of a prop firm where traders must demonstrate profitable trading skills to earn a funded account. Traders pay an evaluation fee upfront and must meet specific profit targets while staying within risk parameters like daily loss limits and max drawdown. Most evals have time limits and require consistent performance over a set period.

Example

A $100k eval might require making $8,000 profit within 30 days while never losing more than $3,000 in a single day or $6,000 total from the starting balance.

Why It Matters

Passing the eval is your gateway to trading with the firm's capital and earning real payouts.

Common Misconceptions

  • You can trade aggressively since it's not real money

    Reality: Evals have strict risk rules that must be followed to pass and develop proper risk management habits

  • Failing an eval means you're permanently banned

    Reality: Most firms allow traders to purchase new evals and retry as many times as they want