The rules for challenge-funded accounts are similar to those for live accounts, but there are some important differences. While both account types require adherence to risk management guidelines, trading strategies, and performance expectations, the key distinction lies in the actual funding process and the risks involved.
For challenge-funded accounts, you are required to meet specific performance targets and follow a set of risk parameters (such as drawdown limits and trade execution rules). Once you successfully pass the challenge, you are eligible for live account funding.
For live accounts, the main difference is that you are trading with actual capital. This introduces the need for careful risk management and strategy refinement, as you are now dealing with real financial stakes. Additionally, the live account will likely have stricter oversight for larger positions or volatile assets.
It is crucial to understand and follow the rules for both challenge and live accounts to ensure a smooth transition and successful trading experience.