Complete Guide to Prop Trading

Discover everything you need to know about prop trading, how it works and how to earn money. Our complete guide to prop trading answers the most popular questions that beginners have.

Prop trading, short for ‘proprietary trading’, is a unique opportunity
for traders to access significant capital without risking their own money.

Unlike retail trading, where individuals trade using their personal funds,
prop traders operate using a firm’s capital.
In return, they keep a percentage of the profits they generate.

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What is Prop Trading?

Prop trading involves traders using a firm’s money to trade financial markets, such as forex, stocks, and cryptocurrency. The firm provides capital, and traders aim to grow it by making profitable trades.

In exchange, the firm takes a share of the earnings while the trader receives a payout based on their performance.

At Plus Markets, we do things a little differently. Instead of putting any capital at risk, traders conduct all trades in a simulated environment. If traders pass the final challenge, they can withdraw up to 90% of the profits that they make as a real payout.

Plus Markets enables talented traders to access professional-level trading without large startup capital requirements.

How Does Prop Trading Work?

1.

Evaluation phase: Traders start by completing an evaluation, which tests their ability to trade profitably while following risk management rules.

2.

Verification phase: Some challenges include an additional verification stage to confirm trading consistency.

3.

Funded trading: After passing, traders receive a funded account where they can trade using the firm’s capital. At Plus Markets, traders are given access to a funded simulated account and earn Plus Trader status.

4.

Profit sharing: Traders keep a percentage of the profits they generate. Prop trading firms provide tools, resources, and a structured trading environment, allowing traders to focus solely on executing successful trades.

Why Choose a Prop Firm
Over Personal Trading?

Many traders struggle with personal trading because of capital limitations,
emotional decision-making, and high risks. Prop trading firms solve these issues by offering:

Access to larger capital: Instead of trading with a small personal account, traders can control significant amounts, increasing their profit potential.

Defined risk management: Prop firms set rules that encourage disciplined trading, helping traders develop sustainable strategies.

No personal risk: Traders don’t risk their own money, making it easier to focus on executing high-quality trades.

Structured growth opportunities: The challenge process and profit-sharing model provide a clear path for traders to scale their careers.

Who is Prop Trading For?

Prop trading is ideal for:

Aspiring traders: Those looking to build a professional trading career without needing large personal capital.

Experienced retail traders: Traders who have profitable strategies but want to scale up their capital and earnings.

Disciplined and strategic thinkers: People who can manage risk, follow structured rules, and remain patient during market fluctuations.

Anyone seeking a flexible income stream: With prop trading, traders can work from anywhere, setting their own schedules while leveraging market opportunities.

Whether you're a beginner eager to learn or an experienced trader looking to maximize your profits, prop trading offers a powerful way to take your trading journey to the next level.

Understanding the Plus Markets
Prop Trading Model

At Plus Markets, we provide traders with the opportunity to earn real payouts from simulated trading.

Our structured challenge model is designed to reward skill, discipline, and consistency, allowing traders to maximise their earning potential while minimising personal risk.

How our challenge process works

We collect personal details necessary for account registration, identity verification,
and secure transactions.

1.

The evaluation phase: Traders begin by taking a trading evaluation, where they must demonstrate their ability to generate profits while adhering to our risk management rules.

2.

Plus Trader: Once a trader successfully passes the evaluation, they are given access to a funded account, allowing them to keep any profits that they make.

3.

Profit payouts: Traders earn a share of the profits they generate, with some of the highest payout rates in the industry.

Our model is designed to encourage responsible trading, providing traders with clear rules and structured growth opportunities.

Key differences from traditional trading accounts

Prop trading differs significantly from traditional retail trading accounts,
offering a structured and low-risk alternative:

Feature

Plus Markets Prop Trading

Traditional Trading Accounts

Capital provided

Yes, Plus Markets provides you with simulated capital up to $4 million.

No, you must trade with personal funds

Personal risk

None

High risk, your personal funds are at stake

Profit sharing

Earn up to 90% of profits

Keep all profits, with a much higher risk

Growth potential

Can easily scale up through successful trading and affiliate income

Limited to personal account size

Support & Guidance

Dedicated resources and risk management rules

Self-managed trading with no external guidance

Trading psychology

Less emotional pressure due to low personal risk

High pressure due to high personal risk

At Plus Markets, we’ve created a system that removes financial barriers, allowing traders to focus purely on developing their skills and generating consistent profits.

Whether you're a new trader looking to start your journey or an experienced trader looking to scale, our prop trading model provides the tools and funding you need to succeed.

The Prop Trading Challenge Explained

At Plus Markets, our prop trading challenge is designed to identify and fund skilled traders
who can trade responsibly while generating consistent profits.

This evaluation process ensures that only the best traders can earn Plus Trader status,
maintaining a sustainable trading environment for everyone.

What is the Evaluation Process?

The evaluation process consists of one or two phases (depending on the challenge type) where traders must demonstrate profitability, discipline, and risk management skills.

1.

Sign up for a challenge: Choose your preferred funding level and register for a challenge that aligns with your trading style and goals.

2.

Trade within the rules: Execute trades while adhering to our risk management guidelines and trading objectives.

3.

Meet the profit target: Achieve the required profit percentage without exceeding risk limits.

4.

Get funded: Once you pass the evaluation, you move onto the final challenge stage and start earning real profits.

How to pass the challenge?

Passing the prop trading challenge requires a combination of skill, patience,
and risk management. Here are the key factors for success:

Follow risk rules: Stick to the daily and overall drawdown limits to avoid disqualification.

Meet the profit target: Reach the required percentage gain while maintaining controlled risk.

Trade consistently: Avoid reckless trading or over-leveraging to hit targets too quickly.

Manage drawdowns: Use proper stop-loss levels and position sizing to stay within limits.

Stick to your strategy: A consistent approach is key to proving you can trade profitably over time.

Risk limits and trading objectives

To ensure fair and responsible trading, every challenge comes with set risk limits and objectives, including:

Profit target: The minimum percentage gain required to pass the challenge.

Daily loss limit: The maximum amount you can lose in a single trading day.

Overall drawdown limit: The total allowable loss across the challenge period.

Daily lots limit: The number of lots that you can trade each day.

Maximum risk: The maximum percentage of your account that you can risk on each trade.

Trading period: A set timeframe in which you must meet the objectives.

Trading days requirement: A minimum number of trading days to encourage consistency.

Traders who fail to stay within these parameters will not pass the challenge. These rules are in place to mimic real market conditions and promote disciplined trading.

What happens after passing the challenge?

Once you successfully complete the challenge, you will become a Plus Trader and be eligible to withdraw up to 90% of your profits as a payout. Payouts are scheduled weekly or bi-weekly.

Trading Rules and Requirements

At Plus Markets, we set clear trading rules and requirements to ensure
a structured and risk-managed environment for our funded traders.

These rules help maintain consistency, discipline, and sustainability in the trading process.
Below are the key guidelines all traders must follow.

Daily loss limits and maximum drawdown

Risk management is at the core of our prop trading model.
To protect both traders and our capital, we enforce strict loss limits:

Daily loss limit: Each trader has a maximum allowable loss per trading day. If this limit is reached, trading for the day will be restricted to prevent further losses.

Maximum drawdown: This is the total amount you can lose over the course of the challenge or your funded trading journey. Exceeding this limit results in account closure

By adhering to these loss limits, traders can develop disciplined strategies that prioritize long-term profitability over short-term gains.

Trading hours and permitted instruments

At Plus Markets, traders have access to a wide range of financial instruments, including forex, indices, commodities, and cryptocurrencies. However, trading hours and permitted assets vary based on market conditions and liquidity.

Forex and indices: Available for trading 24/5 during standard market hours.

Commodities and cryptocurrencies: Subject to specific trading windows depending on exchange hours.

Restricted instruments: Certain high-volatility or illiquid assets may be restricted to ensure fair trading conditions.

Traders should always check the available instruments on our platform and remain aware of market opening and closing times.

Holding trades overnight and over the weekend

The ability to hold trades beyond market hours depends on the account type:

Traders are typically required to close positions before the market closes for the weekend to reduce exposure to unpredictable price gaps.

Some traders may be permitted to hold positions overnight and over weekends, depending on risk assessment and account level.

Holding trades beyond standard market hours can carry additional risks, such as price gaps and increased margin requirements. 

Always review your account guidelines before leaving positions open.

Leverage and margin requirements

Leverage can amplify both gains and losses, so it must be used responsibly. Plus Markets offers competitive leverage options, but traders must adhere to margin requirements:

Leverage limits: Different asset classes have varying leverage limits, ensuring a balanced approach to risk

Margin calls: If your margin level drops below the required threshold, your positions may be closed automatically to protect against further losses.

Risk-adjusted leverage: As traders progress, leverage conditions may be adjusted based on performance and risk profile.

Understanding and following these rules will help traders maintain their accounts, avoid unnecessary risks, and maximize their potential for success with Plus Markets.

Understanding Commissions,
Fees, and Payouts

As a trader, it's essential to understand how you get paid, what costs you may encounter,
and how to maximize your earnings.

How Plus Markets’ payouts work

If you pass a challenge, you earn a share of the profits you generate.
Our payout structure is designed to reward consistent and disciplined traders.

Profit split: Traders receive a high percentage of their trading profits, ensuring they are fairly rewarded for their performance.

No hidden deductions: What you earn is what you get. We don’t charge hidden fees that eat into your profits.

Withdrawal options and processing times

We offer fast and flexible withdrawal options so traders can access their profits with ease.

Multiple payment methods: Withdraw funds via bank transfer, cryptocurrency, or e-wallets, depending on your preference.

Quick processing times: Most withdrawals are processed within 24-48 hours, ensuring you get paid without unnecessary delays.

No withdrawal limits: Unlike some firms, we don’t cap how much you can withdraw as long as you meet the required payout criteria.

Costs to Be Aware Of

While Plus Markets aims to keep trading costs minimal, it’s important to be aware of any associated fees.

Challenge Fee: A one-time fee is required to take the trading challenge. This ensures traders are serious and committed.

Spread and Commissions:  Depending on the asset, some trades may incur small

By understanding payouts, withdrawal options, and potential costs, traders can plan their financial strategy effectively and make the most of their trading journey with Plus Markets.

Frequently Asked Questions

The Plus Markets Challenge is designed to reward talented traders with real payouts. If you manage to pass a challenge, you get to keep 90% of the profits that you make in your simulated trading account.

Here’s how it works:

1. Enter the challenge

Choose an account size that suits your trading goals. When you sign up, you’ll gain access to a simulated trading environment that mirrors real market conditions.

2. Trade & prove your skills

Your goal is to reach the profit target while staying within the risk management rules:

  • No time limits. Trade at your own pace.
  • Follow the daily and overall drawdown limits.
  • Use any strategy that aligns with our guidelines.

3. Get evaluated

Your performance is assessed based on profitability, consistency, risk management and trading strategy. If you manage to make a profit whilst adhering to the challenge criteria, you pass.

4. Get paid

Pass the challenge, and you’ll get to keep 90% of the profits that you make. No hidden fees, no gimmicks.

What If You Don’t Pass?

If you don’t pass the challenge, you can always try again. We offer unlimited retry options so you can refine your skills and come back stronger.

The Plus Markets Challenge is your stepping stone to income-generating simulated trading. Proving your skills means unlocking real earning potential.

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Plus Markets operates as a simulated trading platform designed to reward talented traders who can trade within our requirements. All trading activities on our platform are conducted using virtual funds and do not involve real money.

As such, Plus Markets is not responsible for any losses or financial outcomes that may result from trading with real capital outside of our platform. Please trade responsibly and only use real funds when you are confident in your skills and risk management strategies.

Please note that Plus Markets does not offer services to residents of the following countries: Afghanistan, Central African Republic, Democratic Republic of the Congo, Cuba, Guinea, Haiti, Iran, Iraq, Libya, Mali, Myanmar, North Korea, Russian Federation, Belarus, Somalia, South Sudan, Sudan, Syria, Venezuela, and Yemen.

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