The world of trading has evolved rapidly over the past decade, and one of the most revolutionary opportunities for traders is prop trading—short for proprietary trading. Instead of risking their own money, traders partner with prop firms that provide capital in exchange for a share of the profits. One of the most important elements of […]
In prop trading, one of the most important risk management rules every trader must understand is the concept of daily drawdown. A daily drawdown refers to the maximum loss a trader is allowed to take in a single trading day. Prop firms, including platforms like Pax Market Funds, set this rule to protect both the […]
In prop trading, managing risk is just as important as chasing profits. One of the most critical risk metrics every trader must understand is Max Drawdown (MDD). Max Drawdown refers to the largest percentage decline from a trading account’s peak balance to its lowest point before recovering. In simple terms, it measures how much of […]
In prop trading, a profit target is a specific financial goal that a trader aims to achieve within a given period or trading challenge. Firms like Pax Market Funds use profit targets as part of their trading structure to promote discipline, consistency, and effective risk management. Essentially, a profit target defines the amount of gain […]