FUNDED7 Official Ambassador
Kobayashi DaisukeDICE
16 years in the B.League, now an active 3x3 player. Sharing prop firm basics simply for first-timers
Learn these first
30 FX terms
30 terms that come up in our explanations, each summed up in one line.
1Learn just these 3
Loss limit
count too
always set one
2Browse by category
3💱 Trading basics
Lot
The unit for how much you trade. In forex, 1 lot = 100,000 units is common, and 0.01 lot = 1,000 units. With 0.01 lot on USD/JPY, a 1-sen move means about ¥10 profit or loss
pips
The unit for price movement. For USD/JPY, 1 pip = 0.01 yen (1 sen). For EUR/USD and others, 0.0001 dollars is 1 pip
Spread
The difference between the buy and sell price. The moment you trade, you start down by this amount. It tends to widen sharply when economic indicators are released.
More →Long (buy)
Buying because you expect the price to rise. Profit if it rises, loss if it falls
Short (sell)
Selling because you expect the price to fall. In forex you can start with a sell even if you don't own anything
Market order
An order to buy or sell right away at the current price
Limit order
An order set at a better price, such as "buy if it falls to this price (or sell if it rises)"
Stop order
An order set at a less favorable price, such as "sell if it falls to this price." Used for stop losses
Slippage
The gap between the price you ordered at and the price you actually got. It happens more often when prices move fast.
4🛡️ Risk management
Stop loss
Closing a trade at a price you set in advance so the loss doesn't grow any bigger. In prop trading, it's your best tool for staying within the loss rules.
Take profit
Closing a winning position to lock in the profit
Unrealized loss (floating loss)
The not-yet-final loss on a position you haven't closed. In prop trading, unrealized losses (floating losses) also count toward the loss limits.
Drawdown
How much your account has dropped from its highest point. A key number that decides whether you pass or fail at a prop firm.
Volatility
How wildly price moves. The bigger it is, the bigger your profit/loss swings, even with the same lot size
More →5📊 Reading charts
Candlestick
Shows the open, high, low and close for a set period in one bar. Up bars and down bars are different colors
Timeframe
Shows how many minutes or hours one candlestick covers. M1 = 1-minute, H1 = 1-hour, D1 = daily
Range
When price keeps moving up and down within a set range
Economic indicators
Statistics that show the state of a country's economy, like jobs and prices. The market can move sharply the moment they're released.
More →6🏆 Prop firms
Prop firm
A company where you pay a challenge fee, and if you pass the challenge, you're paid based on your virtual account's results
Challenge
A test where you reach a set profit target while following the loss rules. FUNDED7's Two Phase has two stages.
Challenge fee
The fee to take a challenge. With a prop firm, the most you lose is basically this challenge fee
Virtual funds (demo account)
The funds you trade with aren't real money but a virtual account. You don't put your own money into the market
Daily loss limit
The most you are allowed to lose in one day. At FUNDED7 it is 5% of the previous day's closing balance. Unrealized losses count too, and breaking it means you fail
Max total loss (overall loss limit)
The max loss allowed on the whole account. In Two Phase, it's a fixed line that doesn't move from the starting balance
Profit split (payout)
The share of profit on your passed account that the trader receives. FUNDED7's Two Phase is 80%
Tips for not failing on the loss rules are in the illustrated rulebook.
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FUNDED7 rules are based onOfficial FAQ. Lot and pip sizes may differ by broker and instrument.