How splits are calculated, when scaling improves them, and why the split is less important than the payout cycle.
Key takeaways
- The split applies to net realised profit after any prior losses are recovered.
- A faster payout cycle can be worth more than a higher headline split.
- Scaling plans that raise the split reward consistency, not single big months.
A profit split is the share of net trading profit you keep. An 80/20 split means ₹80,000 of a ₹1,00,000 net profit is yours. The word doing the work is 'net': most firms require earlier losses to be recovered before a new payout is calculated.
The cycle matters as much as the percentage. An 80% split paid every fortnight compounds your personal capital far faster than a 90% split paid quarterly, and it also tells you sooner whether the firm actually pays.
Scaling plans typically raise both allocation and split as you accumulate profitable months. Read the qualification criteria — some require consecutive profitable months, which punishes a normal flat month more than a small losing one.
Finally, check whether the split changes after a reset or a breach. A split that silently resets to the base tier after one bad month changes the long-term economics considerably.
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