From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.
Implied volatility (IV) is a forward-looking metric derived from options prices that reflects the market's expectation of how much an asset's price will move over a given period. Unlike historical volatility, which looks at past price movements, implied volatility represents the market's consensus on future uncertainty. Higher implied volatility generally indicates greater expected price swings.
Learn moreThe Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of an investment. It represents the discount rate at which the net present value of all future cash flows from an investment equals zero. A higher IRR indicates a more attractive investment opportunity.
Learn moreThe inverse head and shoulders is a technical chart pattern that signals a potential reversal from a downtrend to an uptrend. It is the mirror image of the standard head and shoulders pattern, featuring three troughs — a lower central trough (the head) flanked by two higher troughs (the shoulders) — with a neckline connecting the highs between the troughs. A confirmed break above the neckline is typically viewed as a bullish signal.
Learn moreExplore all glossary terms currently grouped under the letter "I".
Becoming a top trader starts with the right environment. 4PropTrader offers market-leading, risk-free conditions for your trading journey. All accounts operate with simulated funds — no real currency is involved. This allows you to build skills and confidence without financial risk. With our programs, you can grow and excel as a trader.
