The Prop Trader's Dictionary

From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.

T

Tax Extension

A tax extension is a formal request made to a tax authority for additional time to file a tax return beyond the standard deadline. In the United States, individual taxpayers can request a six-month extension using IRS Form 4868. Importantly, a tax extension extends the filing deadline but does not extend the deadline for paying any taxes owed.

Learn more

Trading

Trading is the act of buying and selling financial instruments — such as stocks, currencies, commodities, or derivatives — to generate profit from price movements. It can be conducted across different time frames, from high-frequency algorithmic trading to long-term position trading. Trading requires a combination of market knowledge, technical skills, and disciplined risk management.

Learn more

Traditional Economy

A traditional economy is an economic system in which production, trade, and distribution of goods and services are guided by customs, traditions, and historical practices rather than market forces or government planning. These economies are typically found in rural or agricultural communities and rely heavily on subsistence farming, barter, and inherited roles. Traditional economies have limited exposure to modern financial markets.

Learn more
Selected glossary section

3+ terms

Explore all glossary terms currently grouped under the letter "T".