Nine prop firm rules you must read before paying a fee

First, drawdown type: static or trailing, and measured on balance or equity. Equity-based trailing limits can breach on an unrealised dip even if the trade later closes green.

Second, the daily loss reset time. A limit that resets at midnight IST behaves differently from one that resets at market open, especially for MCX evening traders.

Third, consistency rules. Some firms cap the share of total profit any single day may contribute. This is defensible but changes strategy — a trader who makes their month on two event days will fail it.

Fourth, news and event restrictions. Fifth, holding restrictions overnight or over the weekend. Sixth, permitted instruments and whether the list can change mid-evaluation.

Seventh, the profit split and when it starts. Eighth, payout frequency, minimum payout and processing time. Ninth — and most important — the clause describing 'prohibited' or 'unusual' trading. If it is vague, ask for examples in writing before you pay. A firm confident in its rulebook will answer.