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 […]
What Is Leverage In Prop Trading
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Leverage is one of the most powerful tools in proprietary (prop) trading, allowing traders to control larger positions in the market with relatively small capital. At Pax Market Funds, leverage plays a central role in helping traders maximize opportunities without risking their personal savings. In simple terms, leverage acts as a multiplier—if a trader has […]
In the world of PAX MARKET FUNDS prop trading, the evaluation process is one of the most critical factors that determines how quickly and effectively a trader can gain access to funded capital. Traditionally, many prop firms rely on 2-step or even 3-step challenges, requiring traders to pass through multiple profit targets, consistency rules, and […]
Prop trading firms such as Pax Market Funds run evaluation challenges to protect their capital and to ensure they only fund skilled and disciplined traders. Imagine if a firm gave every applicant instant access to large trading accounts without testing – the majority would likely lose money quickly, which would make the business unsustainable. The […]
Prop trading, or proprietary trading, has become a popular choice for traders who want to scale their skills without putting all their personal savings at risk. When you trade in the regular market, you’re limited to your own capital. If you only have $5,000 or $10,000, your earning potential is capped, and one or two […]