Prop Firm Rules in India, Explained in Plain English

Every prop firm challenge comes down to a profit target you must reach and loss limits you must not breach — a daily loss limit and an overall (maximum) loss limit — plus rules on trading days, consistency, position size and holding time. On FundedRise both loss limits are static and fixed in rupees from day one: on a ₹1 Lakh 2-Step account that is ₹4,000 a day and ₹10,000 overall, against a target of 8% then 5%.

Last updated: 10 October 2026

Prop firm rules at a glance

Each rule in one line, and the value FundedRise enforces. Rupee figures are for a ₹1 Lakh account; every limit scales with the size you choose.

RuleWhat it meansFundedRise
Profit targetThe profit you must reach to pass a phase.2-Step Evaluation: Phase 1: 8%, then 5%. 1-Step Evaluation: 10% in a single phase. Instant Funding: 5% before a payout.
Daily loss limit (daily drawdown)The most the account may lose within one trading day, open positions included.4% (₹4,000) on the 2-Step and 1-Step; 3% (₹3,000) on Instant Funding.
Overall loss limit (max drawdown)The most the account may ever fall below its starting size.10% / 8% / 6% (₹10,000 / ₹8,000 / ₹6,000).
Drawdown typeWhether the loss limit stays fixed or moves up with profit.Static. Neither limit trails your profit.
Minimum trading daysDistinct days on which you must trade before you can pass.5, counted per phase.
One-day profit cap (consistency)How much of the target a single day is allowed to count for.40% of the target during an assessment.
Max loss per tradeA ceiling on what one position should lose.2% of the account (₹2,000).
Leverage and lotsHow large positions may be.Up to 100x; whole exchange lots only.
Holding periodWhether positions may stay open overnight or over a weekend.Intraday only. Positions are closed at 3:15 pm IST.
Time windowCalendar days available to pass.60 days (2-Step, both phases) / 45 days (1-Step); Instant Funding accounts run 30 days.
Payout conditionsWhat a funded account must show before a payout.At least 5% profit and 5 trading days; requests every 14 days.

What is a profit target?

The profit, as a percentage of the starting account size, that you must reach to pass. On a two-phase challenge each phase has its own target and starts from a clean balance — phase 1 profit does not carry into phase 2. On FundedRise the 2-Step asks for 8% and then 5%, the 1-Step for 10% in one phase, and Instant Funding has no assessment, only a 5% profit threshold before a payout. A target is judged on closed trades, so an open position showing a paper profit does not pass an account on its own.

What is the daily loss limit (daily drawdown)?

The most the account may lose within one trading day. Firms differ on two details, and both matter: what the loss is counted from, and whether open positions count. On FundedRise the limit is a fixed rupee amount — 4% of the starting size on the 2-Step and 1-Step, 3% on Instant Funding — counted from your balance at the start of the IST day, and it includes losses on positions that are still open.

Example. A ₹1 Lakh 2-Step account starts the day at ₹1,02,000. The daily limit is ₹4,000, so the account fails if its value, open positions included, touches ₹98,000 at any moment that day. The next morning the count starts again from the new day-start balance.

What is the maximum (overall) drawdown?

The most the account may ever fall below its starting size. It never resets. On FundedRise it is 10% on the 2-Step, 8% on the 1-Step and 6% on Instant Funding, measured from the starting size — so a ₹1 Lakh 2-Step account fails if its value falls to ₹90,000, however well it had done before.

Trailing vs static drawdown: what is the difference?

A static drawdown fails the account at a fixed level. A trailing drawdown follows the account's highest value upwards, so the failure level rises as you make profit. Some firms stop the trail once it reaches the starting balance; others do not. The table shows the same ₹10,000 limit both ways, on an account that has grown to ₹1,06,000.

₹1 Lakh account, ₹10,000 limitStaticTrailing (illustration)
Failure level on day one₹90,000₹90,000
After the account reaches ₹1,06,000₹90,000₹96,000
Room left at ₹1,06,000₹16,000₹10,000

FundedRise uses static limits only. Always ask a firm which kind it uses, and if it trails, whether the trail stops.

What is the minimum trading days rule?

A minimum number of separate days on which you must trade before you can pass, so that a single session cannot carry an account. On FundedRise it is 5, and a trading day is any IST date on which you open at least one position. On the 2-Step the count restarts in phase 2, so passing both phases takes at least 10 trading days.

What is the consistency rule?

A rule that limits how much of your result can come from one day. During a FundedRise assessment, no single day can count for more than 40% of the profit target. Profit above that stays in your balance — it still cushions your loss limits — but it does not count towards the target. Once a day's closed profit reaches the cap, new positions cannot be opened until the next day; you can still close what is open.

₹1 Lakh accountTargetMost one day can count
2-Step, phase 1₹8,000₹3,200
2-Step, phase 2₹5,000₹2,000
1-Step₹10,000₹4,000

So on the 1-Step a ₹6,000 day counts as ₹4,000 towards the target. Funded accounts are not assessed against a target, but a separate consistency check — your best day compared with your total profit — is applied when you request a payout, at the level set in the programme terms.

Are there lot size, leverage and per-trade limits?

Yes. Orders are in whole lots at the exchange lot size for the contract, which the order ticket shows, and leverage is capped at 100x. The published maximum loss on a single trade is 2% of the account — ₹2,000 on ₹1 Lakh. Minimum and maximum order sizes for each programme are checked when you place an order. Instrument details are on instruments.

Can you hold overnight, trade expiry days or trade the news?

Positions cannot be held overnight or over a weekend. Every open position is closed at 3:15 pm IST, and no new position can be opened after that. Expiry days follow the same rule, so positions are closed before the contract settles. The published rules contain no separate restriction on trading around news, but the loss limits apply in full on event days, when NIFTY and BANKNIFTY options can move quickly.

What you can trade is NIFTY and BANKNIFTY options on the NSE and SENSEX options on the BSE, buying or selling. Index futures, copy trading and algorithmic execution are not permitted.

What happens if you break a rule?

A breach of the daily or overall loss limit ends the account immediately: the platform closes every open position at the price that caused the breach, and there is no manual review. Running out of time is different — an assessment that has not hit its target simply expires. A failed account can be reset once, at half the original fee, which restarts it at the starting size with no trade history. The loss limits keep applying once you are funded. For every number in one place, see the prop challenge rules; for choosing between programmes, the prop challenge buyer's guide.

Common questions

What is daily drawdown in a prop firm?

The most an account may lose within a single trading day. On FundedRise it is a fixed rupee amount — 4% of the starting size on the 2-Step and 1-Step, 3% on Instant Funding — counted from your balance at the start of the IST day, and it includes losses on positions that are still open.

What is the difference between daily drawdown and max drawdown?

Daily drawdown limits what you can lose in one day and resets each morning. Max drawdown (the overall loss limit) limits how far the account can ever fall below its starting size and never resets. Breaching either one ends the account.

What is a trailing drawdown?

A loss limit that moves up as the account makes new highs. If an account with a ₹10,000 trailing limit grows from ₹1,00,000 to ₹1,06,000, the failure level rises from ₹90,000 to ₹96,000. A static drawdown would have stayed at ₹90,000. FundedRise uses static limits.

What is the consistency rule in prop trading?

A rule that stops one exceptional day from carrying an account. During a FundedRise assessment, no single day can count for more than 40% of the profit target; profit above that stays in your balance but does not count towards the target. A separate consistency check applies when a funded account requests a payout.

What counts as a trading day?

Any IST calendar date on which you open at least one position. On FundedRise you need at least 5 trading days to pass, and on the 2-Step the count starts again in phase 2.

Can I hold positions overnight or trade on expiry day?

Positions cannot be held overnight or over a weekend; every open position is closed at 3:15 pm IST, and no new position can be opened after that. Expiry days follow the same rule, so a position is closed before the contract settles.

Is news trading allowed?

FundedRise's published rules do not include a separate restriction on trading around news. The loss limits apply in full on event days such as RBI policy announcements or the Union Budget, when index options can move sharply.

See every rule for your account size

The pricing page shows each target and limit in rupees for every size, before you pay.