Trading Rules
How to Read Prop Firm Trading Rules
Rulebooks are written to be complete, not readable. This checklist covers the clauses that most often decide whether an account survives.
Published January 16, 2026 · 6 min read
Separate hard rules from soft rules
Hard rules close the account immediately when breached. Soft rules may lead to a warning or a withheld payout. Identify which category each rule falls into.
Find the prohibited strategies section
This section usually names latency arbitrage, tick scalping, reverse hedging across accounts, and third-party copy trading. It is the most common cause of a refused payout.
Note every time reference
Server time zones, daily reset times, news blackout windows and weekend close deadlines are all time-based. Convert them to your local time once and write them down.
Keep a dated copy
Save the rulebook version in force on your purchase date. It gives you a reference point if terms change later.