Glossary

The maximum loss your account can take before it is closed. We use trailing drawdown that follows your highest equity.

A drawdown floor that moves up as your equity sets new highs. Once you reach the lock balance, the floor stops trailing and becomes static.

The lowest equity your account can finish at before it is closed. Same idea as max loss limit.

The point at which trailing stops. Applies in Funded and Live. The lock level equals your starting capital.

A drawdown mode that updates the floor at market close. Intraday spikes do not raise the floor. A touch of the floor intraday still closes the account.

A drawdown mode that updates the floor in real time. Used on Express.

The amount of profit required to advance from Evaluation to Funded. Growth: 12 percent. Express: 10 percent.

A rule that limits how much of your gains can come from one trading day. Growth: 30 percent. Express: 50 percent in Funded, none in Evaluation.

Available on all plans (Growth and Express). A one-time $49 reset after a drawdown breach in Evaluation, with 1.5 percent extra drawdown room.

A flat $99 activation cost, the same for every funded account size, charged before the funded account is activated and fully refunded on your first payout. If an account never reaches a payout, the fee is not refunded.

The account balance immediately after your most recent payout. The next payout requires balance to exceed this number by at least $1.

The trigger balance at which the trailing drawdown stops moving. Equals starting capital ($25K, $50K, or $100K).

The subscription amount returned when you reach Live: $409, $319, $239, $309, $219, or $179 depending on plan and size.

A restriction on Express accounts that limits trades to single-leg long calls and long puts only.

The phase after passing Evaluation. The firm carries the simulated capital risk. Payout caps and minimums apply.

The phase after Funded. Real buying power, no payout caps, no minimum payout beyond platform settings, and any payout snaps the drawdown floor to starting capital.

Zero days to expiration. Options that expire on the same trading day.

A trade made up of two or more options contracts, such as a vertical spread, iron condor, butterfly, calendar, or diagonal.

A two-leg options trade with the same expiration and different strikes. Debit spreads pay to enter; credit spreads receive a credit on entry.

A four-leg options trade combining a bull put spread and a bear call spread. Profits when the underlying stays in a range.

A three-strike options trade that profits when the underlying lands at the middle strike.

A two-leg options trade with the same strike and different expirations.

A two-leg options trade with different strikes and different expirations.

A trade where the maximum loss is not capped by the structure itself. Example: short naked call. Allowed on Growth, not on Express.

The market forward-looking estimate of how much the underlying will move, expressed as an annualized percentage.

The obligation to deliver or buy the underlying when a short option is exercised against you.

Know Your Customer. The process of verifying a trader identity before payouts.

Anti-Money Laundering. Policies and procedures to detect and prevent illicit financial activity.

Counter-Terrorism Financing. Screening and recordkeeping designed to prevent financing of terrorism.

Politically Exposed Person. A category of individuals subject to enhanced KYC review due to public office.

US tax form used by US taxpayers to provide a taxpayer identification number.

US tax form used by non-US taxpayers to claim treaty benefits and report foreign status.

US tax form reporting non-employee compensation. Issued when a US taxpayer receives $600 or more in a year.

The rate an option loses value per day from time decay, all else equal. Long options have negative theta; short options have positive theta.

The rate of change of an option price relative to a $1 move in the underlying. A 0.50 delta call gains roughly $0.50 when the underlying gains $1.

The rate of change of delta relative to a $1 move in the underlying. Gamma is highest near the money and on shorter-dated options.

The rate of change of an option price relative to a one-point change in implied volatility. Long options have positive vega.

The rate of change of an option price relative to a one-point change in interest rates. Usually small for short-dated options.

The in-the-money portion of an option price. For calls, max of (underlying - strike, 0). For puts, max of (strike - underlying, 0).

The portion of an option price beyond intrinsic value. Includes time value and volatility premium. Decays to zero at expiration.

A normalized measure of where current implied volatility sits between the 52-week low and high, expressed 0 to 100.

The gap between the highest price a buyer will pay and the lowest price a seller will accept. Wider spreads cost more to enter and exit.

The total number of outstanding contracts for a given strike and expiration. Higher open interest typically means tighter spreads.

An order to buy or sell at a specified price or better. Will not fill at worse prices, may not fill at all.

An order to buy or sell immediately at the best available price. Fills fast but exposes you to slippage.

An order that triggers a market or limit order when the underlying hits a specified price. Common for risk management.

The difference between the expected fill price and the price your order actually executes at. Wider on illiquid options.

Execution of an order. A partial fill means only part of the requested size traded.

When the holder of an option uses their right to buy (call) or sell (put) the underlying at the strike. Long-option holder action.

When a short American-style option is exercised before expiration. Risk for sellers of in-the-money options, particularly near dividends.

An option that can only be exercised at expiration. SPX and most index options are European-style; no early-assignment risk.

An option that can be exercised at any time before expiration. Equity and ETF options are American-style.

The price at which an option can be exercised. A $450 call gives the holder the right to buy the underlying at $450.

The date an option contract terminates. After expiration, the contract has no value. US listed options expire on Fridays unless dated otherwise.

A call with strike above the underlying, or a put with strike below the underlying. No intrinsic value.

A call with strike below the underlying, or a put with strike above the underlying. Has intrinsic value.

An option with strike approximately equal to the current underlying price.

A butterfly variant where the wings are unequal distance from the center strike. Skews the risk profile in one direction.