What is a  prop firm challenge?

A prop firm challenge, also known as a proprietary trading challenge, is like a special test for forex traders. Imagine you're a skilled gamer who wants to join a professional gaming team. The team gives you a challenge to see how well you play and if you're a good fit for their team.

In the world of forex trading, a prop firm (short for proprietary trading firm) is a professional trading firm that gives traders the chance to trade with the firm's money instead of their own. To make sure they choose the best traders, prop firms create challenges. These challenges test how well traders can make smart decisions and earn profits using the firm's money.

Here's the cool part: If you pass the challenge, the prop firm gives you the trading capital to trade with. 

You get to use their money, and you keep a big portion of the profits you make – usually between 80% to 90%! And here's the best part: The prop firm takes care of any trading losses. So, if things don't go well, you won't lose your own money.

Now, here's the tricky part: The main problem is that these challenges are really tough. 

In fact, around 95% or even more of traders fail to pass the challenges made by prop firms. 

During a prop firm challenge, traders are given certain rules to follow. They need to show that they can trade wisely, manage risks, and make profits. If a trader does well and meets the challenge's requirements, they might get a chance trade the prop firm capital. This can be a great opportunity for traders to trade with more money.

So, think of a prop firm challenge as a way for forex traders to prove their skills and potentially start trading with a boost from the firm's resources.