What should we understand by a funded trader?

<p id="isPasted">The concept of funded trading has gained popularity in recent years, particularly in the field of day trading and foreign exchange (forex) trading. It allows traders who may not have sufficient personal funds or risk tolerance to engage in trading activities using larger amounts of capital. These programs are often designed to identify and support talented traders by providing them with the necessary resources to showcase their skills.</p><p>Typically, funded traders undergo a selection process or evaluation period, where they demonstrate their trading abilities and adherence to risk management strategies. The specific criteria vary between funding programs, but common factors considered include profitability, consistency, risk management techniques, and overall trading performance.</p><p>If selected, a funded trader receives access to the allocated capital, usually in the form of a trading account. The trader is then allowed to keep a portion of the profits generated from successful trades, while a percentage or fixed fee is charged by the funding company as compensation for providing the capital and services. In some cases, there may also be performance targets that need to be met for the funded trader to retain the funding.</p>

<p id="isPasted">Funded trading accounts provide a safe harbor for aspiring traders, allowing them to explore and participate in the market without risking their finances. Essentially, traders can execute trades using a third party’s capital. If their trades prove to be profitable, they retain a portion of the earnings as their own.&nbsp;</p><p>A funded account is a trading account backed by a third-party entity, typically a proprietary trading firm. These firms provide the necessary capital for traders to engage in trading activities, and in return, they receive a percentage of the profits generated by the traders they support. This unique arrangement enables traders to access the financial resources required without the burden of using their capital to back the trades or the constant fear of significant financial loss of that trading capital.</p><p>The process of acquiring a funded trading account is relatively straightforward yet rigorous. Traders typically undergo a comprehensive trading evaluation or Audition to assess their trading skills and abilities. Upon completing an Evaluation or Audition, traders are awarded a coveted funded trading account with the necessary capital to execute trades. This opportunity allows traders to showcase their trading skills and demonstrate their potential for profitability.</p><p>Once traders have been granted a funded account, the profits they generate from their trades are divided between themselves and the firm backing their account. The profit-sharing percentage typically falls within the range of 75% to 90%, with the remaining percentage allocated to the firm that funded the account. This not only incentivizes traders to perform at their best but also offers the potential to make extra income.</p>