What are the most common prop firm rules beginners should know before starting?

Key Prop Firm Rules Beginners Must Know 1. Daily & max drawdown limits Most firms cap daily losses (e.g., 5%) and total drawdown (e.g., 10-12%). Breach either and your account is terminated immediately. 2. Profit targets You must hit a minimum profit goal (often 8-10% of starting balance) to pass the evaluation phase before getting funded. 3. Trading restrictions Many firms ban holding trades overnight, trading during news events or using certain strategies like hedging across accounts. 4. Consistency rules Some firms require no single day to exceed a set % of total profits preventing one lucky trade passes.