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I recently decided to figure out what a funded trading account actually means. I found this article and read it carefully. It explained that this is an account that is given to a trader after they prove that they can trade according to the rules and without unnecessary risks. It became clearer to me why all these restrictions on drawdowns and losses are necessary — it turns out that this is simply a way to test a trader’s discipline. The information is simple but useful, and now I have a better understanding of how this whole system works.
