Glossary
Prop trading glossary
Every term funded traders meet, defined in one sentence — with the formula, an example and how it applies at Aveon Funding.
Consistency Rule
A cap on how much of your total profit can come from one trading day.
Daily Drawdown
The most an account may lose within one trading day.
Drawdown
The drop in account value from a peak to a later low, usually shown as a percentage.
Evaluation (Challenge)
A paid trading test on a simulated account that proves you can follow risk rules.
High-Water Mark
The highest balance or equity an account has ever reached.
Instant Funding
A funded account bought directly, with no evaluation phase.
Leverage
How large a position you can open relative to your account balance.
Maximum Drawdown
The total loss limit over the account's whole life.
Payout Protector
Aveon's guarantee covering the payout process on funded accounts.
Profit Buffer
An amount of profit that must stay in the account and cannot be withdrawn.
Profit Split
The share of funded-account profit paid to the trader.
Profit Target
The gain an evaluation account must reach to pass a phase.
Raw Spreads
Spreads passed through close to the market price, with a separate commission.
Static Drawdown
A maximum loss floor fixed at the starting balance that never moves.
Trailing Drawdown
A loss floor that rises as the account makes new highs, but never falls.
Weekend Holding
Keeping positions open from Friday close to Monday open.
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