Evaluation Services Platform typically operate on a business model where they allocate a portion of their own capital to individual traders. These traders, also referred to as prop traders, use the firm's capital to engage in trading activities across various financial markets, such as stocks, options, futures, or foreign exchange (forex).
The key features of a Evaluation Services Platform include:
- Simulated Capital Allocation: Evaluation Services Platform provide traders with simulated trading capital, allowing them to execute trades and potentially profit from the financial markets. The simulated allocated capital is typically leveraged, which means traders can trade with a larger capital base than the amount of trading capital allocated to them.
- Reduced Risk: Evaluation Services Platform often absorb a significant portion of the trading risk, protecting traders from substantial losses beyond a certain threshold. This risk-sharing arrangement enables traders to focus on their trading strategies without being overly burdened by potential losses.
- Support and Resources: Evaluation Services Platform offer various resources and support services to traders, including trading platforms, market data, research tools, educational materials, and mentoring programs. These resources are designed to enhance traders' skills, knowledge, and overall simulated trading performance.
- Simulated Profit-Sharing or Commission Structure: In return for providing simulated trading capital and resources, evaluation Services Platform typically adopt a simulated profit-sharing or commission structure. Traders receive a percentage of simulated profits generated from their trading activities, if any, while the prop firm retains a portion as compensation for providing the simulated capital and support.
Overall, evaluation Services Platform aim to bridge the gap between individual retail traders and the opportunities available in the financial markets. By offering simulated trading capital and a supportive environment, these firms enable retail traders to access markets with reduced cost and risk, providing them with the potential to generate simulated profits and build a successful trading career.
Simulated Funded Account Explanation
Overview
- A Simulated Funded Account is any account in which a trader may be entitled to remuneration payable as a percentage of the simulated profit generated in their account based on the Profit Share associated with the demo account, subject to our Terms of Use and Customer Agreement (Note: A profit share means you are paid based on data which is measured by simulated profit).
- Clients can obtain Simulated Funded Accounts by completing one of our evaluation programs and successfully passing the necessary KYC/AML screening.
- For the avoidance of any confusion, please keep in mind that a Simulated Funded Account is a fully simulated account with real market quotes from liquidity providers. The trading data is sent off to a partnered proprietary trading firm where trades are copied at their own discretion and proprietary trading strategies are developed using the data.
Note: Hypothetical or simulated performance results come with limitations. Simulated results do not mirror actual trading, unlike an actual performance record. Furthermore, since the trades were not executed, the results may have over or under compensated for certain market factors, such as lack of liquidity. Simulated trading programs are typically designed with the benefit of hindsight. It is not guaranteed that any account will achieve profits or losses similar to those shown.