Prop Trading: Course Quiz

Course quiz

1. What is the most a trader can lose in a prop firm evaluation?

   The full account balance The evaluation fee Nothing
2. Where does most of an online prop firm's revenue come from?

   Profits of funded traders Evaluation fees, mostly from attempts that fail Commissions on trades
3. Where does a funded trader's payout usually come from?

   Profits in a real market account in the trader's name The firm's own funds A regulator's compensation scheme
4. On a simulated funded account, when does your profit become real money?

   As soon as a trade closes in profit When the firm pays a payout Never
5. A challenge measures the daily loss limit on equity. You are 4 percent down on open trades that later recover to break even. With a 4 percent limit, what happened?

   Nothing; the day ended flat The account was breached when equity touched the limit The limit only counts closed trades
6. Why do one-step challenges often use a trailing drawdown?

   Because traders prefer it To keep the filter as tight as two static phases would Regulators require it
7. Which is usually the cheapest evaluation for a given account size?

   Instant funding One-step Two-step
8. Which challenge is hardest?

   8 percent target, 10 percent maximum loss 10 percent target, 10 percent maximum loss 10 percent target, 6 percent maximum loss
9. The daily limit is 5 percent on a 100,000-dollar account. You have three open trades each with a 2,000-dollar stop. If all three stop out, what happens?

   Nothing; each loss is under the limit You breach: 6,000 dollars exceeds 5,000 The firm halves the limit
10. A 100,000-dollar account with a 10 percent trailing drawdown on equity reaches 110,000 in open profit, then the trade closes at 100,000. What is the floor now?

    90,000 99,000 100,000
11. You hit the target on day two of a phase with a five-day minimum. What should you do?

    Stop trading; the phase is passed Trade tiny sizes on three more days to satisfy the rule Withdraw the profit
12. A firm has a 30 percent consistency rule. Your best day made 1,500 dollars. What total profit do you need before a payout?

    1,500 dollars 4,500 dollars 5,000 dollars
13. Why do many prop firms forbid holding positions over the weekend?

    To reduce server costs Because a Monday gap can breach a drawdown limit before any stop fills Because weekend trading is illegal
14. Which sizing gives the best chance of passing over several attempts?

    3 to 5 percent per trade to reach the target quickly 0.5 to 1 percent per trade Whatever the platform's maximum allows
15. A scaling plan adds 25 percent every four months of profit. Starting at 100,000, roughly what balance would you have after one year of continuous qualifying?

    125,000 175,000 About 195,000
16. You made 4,000 dollars on a funded account with an 80 percent split. What do you receive?

    4,000 dollars 3,200 dollars 800 dollars
17. Which factor should carry the most weight when choosing a prop firm?

    The size of the discount code The firm's transparency and payout record The maximum account size in the scaling plan
18. Which of these is a counterparty risk in prop trading?

    Hitting the daily loss limit The firm closing before paying your profit split Oversizing to beat a time limit
19. What is the profit target in a typical second phase of a two-step challenge?

    10 percent 5 percent 20 percent
20. Which drawdown type raises the loss floor as your account grows?

    Static Trailing Daily
21. At most online prop firms, a funded account is:

    A real account in your name A simulated account the firm pays a split on A bank account