Updated: Jun 8
As a funded trader, the amount you can earn will depend on a number of factors, including your trading skills, the size of the fund, and the terms of your agreement with the funding firm.
Typically, funded traders receive a percentage of the profits they generate, which is known as the "performance fee." This performance fee is usually in the range of 50-90% of the profits, depending on the firm. The remaining profits are kept by the fund provider.
For example, if a funded trader generates $100,000 in profits, and they have a performance fee of 70%, they would earn $70,000. The fund would keep $30,000.
In terms of income, the potential earnings for funded traders can vary greatly, from a few thousand dollars to hundreds of thousands of dollars or more. It depends on the size of the fund, the trader's performance, and the terms of the agreement.
Becoming a funded trader can be profitable, but it also carries a significant amount of risk. Profitability in trading depends on many factors, including the trader's level of expertise, trading strategy, market conditions, and risk management.
Successful traders are able to consistently generate profits through a combination of sound analysis, discipline, and risk management. It's also worth noting that becoming a funded trader is not a guarantee of success or a path to unlimited wealth. Even the most experienced traders can experience losses, and it's important to have realistic expectations and be prepared for both profitable and unprofitable trades.
It's important to note that trading is not a guarantee of profits and should not be entered into lightly. Before starting to trade, it's essential to educate yourself on the market, understand the risks involved, and develop a solid trading plan that includes risk management strategies.
Like any form of trading, it carries risk and there is no guarantee of profits. Funded traders are still required to adhere to the fund's guidelines and risk management rules, and they can lose their trading privileges if they consistently underperform.
The income potential for funded traders can vary greatly, depending on their performance, the terms of their agreement with the fund, and the size of the fund. Funded traders are also required to adhere to the fund's guidelines and risk management rules, and there is no guarantee of profits. It's not a guarantee of profits, and it's essential to have realistic expectations and be prepared for both profitable and unprofitable trades.