From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.
The leverage ratio measures the extent to which a trader or financial institution is using borrowed capital relative to their own equity. In trading, it indicates how much market exposure a trader has relative to their actual capital. Higher leverage amplifies both potential profits and potential losses.
Learn moreA limit order is an instruction to buy or sell an asset at a specified price or better. Unlike a market order, which executes immediately at the current price, a limit order will only be filled when the market reaches the desired price level. Limit orders give traders more control over their entry and exit prices.
Learn moreLiquidity risk is the risk that a trader or investor may not be able to buy or sell an asset quickly enough at a fair price due to insufficient market activity. In illiquid markets, wide bid-ask spreads and low trading volume can result in significant slippage or difficulty exiting positions. Liquidity risk is particularly relevant during times of market stress or when trading less popular instruments.
Learn moreExplore all glossary terms currently grouped under the letter "L".
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.
