> For the complete documentation index, see [llms.txt](https://docs.upscale.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.upscale.trade/introduction/what_is_prop_trading.md).

# What is Prop Trading

**Prop trading** (short for *proprietary trading*) is a model in which a trader works on an account with a predefined notional amount, risk limits and rules instead of trading personal funds. The trader's income is calculated as a share of the result achieved on that account.

Getting access to a large-notional account does not require putting up a comparable sum: the only payment is the challenge fee — the fee for a trading skills assessment.

### Your own account and an Upscale account

| Parameter                       | Trading your own funds                  | Upscale challenge                         |
| ------------------------------- | --------------------------------------- | ----------------------------------------- |
| Upfront amount                  | equal to the account size you want      | the challenge fee                         |
| Maximum exposure for the trader | the entire deposited capital            | the challenge fee                         |
| Account size                    | limited by personal funds               | from $5,000 to $200,000                   |
| Share of the result             | 100% of the profit and 100% of the loss | 80% of the profit, 90% with the upgrade   |
| Rules and limits                | none                                    | defined drawdown limits and trading rules |

### What a challenge is

A challenge tests how consistently a trader handles risk. The goal is not to show maximum returns, but to reach the profit target without breaching the drawdown limits.

{% stepper %}
{% step %}
**Paying the fee**

The trader selects an account size, an asset category and a challenge format, then pays the fee. No personal deposit is placed on the account.
{% endstep %}

{% step %}
**Skills assessment**

On an account with a defined notional amount, the trader has to reach the profit target while staying within the daily and maximum drawdown and completing the minimum number of profitable days. Formats differ in the number of stages: Basic has two, Accelerated has one, Turbo has none.
{% endstep %}

{% step %}
**Funded stage**

Once the conditions are met, the account moves to funded status. Trading results are used to calculate payouts, and the trader's share is 80% or 90%.
{% endstep %}
{% endstepper %}

Detailed parameters for every format and the cost of participation are covered on the [Getting Started](/how-to-join-upscale/getting_started.md) page; the full list of trading restrictions is on the [Challenge & Trading Rules](/how-to-join-upscale/participation_requirements.md) page.

### Who the model suits

{% tabs %}
{% tab title="Beginners" %}
A way to work with a large-notional account without committing a comparable sum and without risking personal savings — costs are limited to the challenge fee.

Strict drawdown limits act as built-in discipline: the rules make it impossible to keep adding to a losing position and force risk to be calculated in advance.

A [demo account](/how-to-join-upscale/demo.md) is available for practice at no cost.
{% endtab %}

{% tab title="Experienced traders" %}
A way to scale a working strategy without increasing personal exposure. A single funded account goes up to $200,000 in notional, and up to $400,000 across all simultaneously open accounts.

Three asset categories are available — Crypto, RWA (Forex, Commodities, Indices) and ALL — along with a TradingView-based terminal and prices from an independent oracle.
{% endtab %}

{% tab title="Creators and communities" %}
The referral programme pays rewards for invited traders on a multi-level percentage scale.

Terms and statistics on invited users are available in the Referrals section — see [Upscale Workspace](/how-upscale-works/upscale_workspace.md).
{% endtab %}
{% endtabs %}