Prop firm
A prop firm lets you trade capital it funds after you pass a paid challenge, in exchange for a share of the profits and strict rules.
The mainstream model works like this: you pay a fee for a challenge, often on a demo account, with a profit target, a maximum daily loss and a maximum overall loss. If you pass, you get a “funded” account and receive a share of the profits.
The drawdown rules are the real challenge. They can be static or trailing (calculated from the highest point reached), which changes everything for risk management.
Read the terms in detail: news rules, minimum duration, payouts, reset fees. Several prop firms have closed or changed their terms abruptly. Check their reputation and payout history before you pay.