{"term":{"slug":"profit-target","term":"Profit Target","definition":"The minimum profit a trader must generate to pass an evaluation phase or qualify for a payout. Once hit, the trader advances to the next phase or receives their funded account.","extendedExplanation":"Profit targets vary significantly across firms and account sizes, typically ranging from 5% to 10% of the account balance. In 2-step evaluations, Phase 1 usually has a higher target (8-10%) while Phase 2 has a lower target (5%).\n\nThe profit target creates a natural tension with drawdown rules. A 10% profit target with only a 5% max drawdown means you need to make twice what you can afford to lose. This asymmetry is intentional -- firms want to fund traders who can generate consistent returns without excessive risk.\n\nThere is no time limit to hit the target at most firms (FTMO, FundedNext), but some firms (Apex) require minimum trading days. Once funded, there is typically no profit target -- you trade and keep a percentage of profits.","exampleWithNumbers":"FTMO $50K Phase 1: profit target is $5,000 (10%). Phase 2: target is $2,500 (5%). You need to grow the account to $55,000 in Phase 1, then $52,500 in Phase 2. With a 5% daily loss limit ($2,500) and 10% max drawdown ($5,000), you have a 2:1 target-to-drawdown ratio in Phase 1.","category":"evaluation","relatedTerms":["evaluation-phase","funded-account","consistency-rule","challenge-fee","payout-split"]},"_links":{"self":"https://runvigil.app/api/glossary/profit-target","page":"https://runvigil.app/learn/profit-target","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}