Glossary
Reward cycle
The reward cycle is how often a funded trader can request their share of the profit, also called a payout cycle.
What it means
Common cycles are weekly, every 14 days or monthly, and some firms allow requests on demand once conditions are met. The first reward often has a longer wait than the ones after it.
Many firms say reward instead of payout. Part of the reason is advertising: ad platforms treat payout language as a financial claim and are more likely to reject ads that use it.
After a request, the firm reviews the account and pays the trader's share. At some firms, the account's loss limits are recalculated after a reward, so traders should check their new floor before trading again.
Worked example
A firm has a 14 day reward cycle. A trader places their first funded trade on day 1 and can request a reward from day 15, if the account is in profit and meets any other conditions, such as a minimum request amount or a consistency rule.
Free tools that use this
- Consistency rule checkerThis consistency rule calculator checks whether your best trading day is too large a share of your profit. In words: divide your best day's profit...
- Reward projection calculatorThis calculator projects the rewards a funded account would pay you at a steady monthly return. In words: the account size times the monthly...
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