From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.
Daily drawdown refers to the maximum amount a trading account is allowed to lose within a single trading day. It is typically expressed as a percentage or fixed amount based on the account size. This limit is used to control risk and prevent excessive losses in a short period of time, especially in structured environments like prop trading.
Learn moreDay trading is a trading style where positions are opened and closed within the same trading day, with no trades held overnight. It requires active monitoring of the markets, quick decision-making, and a disciplined approach to risk management. Day traders aim to profit from short-term price movements in stocks, forex, futures, or CFDs.
Learn moreThe Debt Service Coverage Ratio (DSCR) is a financial metric that measures a company's or an individual's ability to cover their debt obligations using their operating income. A DSCR above 1.0 indicates that there is sufficient income to service the debt, while a ratio below 1.0 suggests potential difficulty in meeting repayment obligations. It is commonly used by lenders and investors to assess financial health.
Learn moreExplore all glossary terms currently grouped under the letter "D".
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