A prop firm profit target is the gain a trader must reach, measured from the starting balance of an evaluation phase, before that phase is cleared. On CMC Funded the target is 8% in Phase 1 and 5% in Phase 2 on the Classic route, and 10% in a single phase on the Direct route. The evaluation is simulated.
In short
- A profit target is a percentage of the phase's starting balance. It is a rule, not a forecast, and the dollar amount follows from the account size.
- CMC Funded's Classic 2-Step route asks for 8% in Phase 1 and 5% in Phase 2. The Direct 1-Step route asks for 10%.
- The target never replaces the loss limits. Reaching it counts only if the account has stayed above the daily loss limit and the fixed maximum loss throughout.
- Each phase also needs 3 minimum trading days, so a single session cannot clear a phase.
- The reward stage has no profit target. Only the two loss limits apply there.
What is a profit target in a prop firm challenge?
A profit target is the gain that clears an evaluation phase. It is set as a percentage of the account's starting balance for that phase, so an 8% target on a $25,000 account is $2,000. Reach it while staying inside every other rule, and the phase is cleared.
The target is one of three conditions in a challenge. The other two are the loss limits, which end the account if reached, and a minimum number of trading days. The guide to passing a prop firm challenge shows how the three work together in a plan.
The word "profit" can mislead. The account is simulated, and the target describes simulated gains on a test account. It is not a sum of money that reaches you. What you can earn comes later, at the reward stage, and it depends on performance under the programme terms. The guide to what a prop firm is explains how that fits together.
A profit target is also not a promise about results. Reaching it moves you to the next stage under the published rules. Reaching a loss limit before the target ends the evaluation.
What are the CMC Funded profit targets?
On the Classic 2-Step route the target is 8% in Phase 1 and 5% in Phase 2. On the Direct 1-Step route it is 10% in one phase. Each is a percentage of the starting balance, so the dollar figure depends on the account size you choose: $10K, $25K, $50K or $100K.
| Account size | Classic Phase 1 (8%) | Classic Phase 2 (5%) | Direct (10%) |
|---|---|---|---|
| $10,000 | $800 | $500 | $1,000 |
| $25,000 | $2,000 | $1,250 | $2,500 |
| $50,000 | $4,000 | $2,500 | $5,000 |
| $100,000 | $8,000 | $5,000 | $10,000 |
Every row also needs 3 minimum trading days per phase. A phase has no time limit, so you can reach the target over as many days as your plan needs.
The percentage is the rule. If a figure on a page differs from the sum of the percentage and the starting balance, the percentage and the rules page are what apply. Fees are listed on the challenges page: from $99 to $499 on Classic and $149 to $549 on Direct, by account size.
How does the profit target compare with the loss limits?
The target only means something next to the loss limits, because they set how much room you have while you chase it. On Classic the daily limit is 5% and the fixed maximum loss is 10%. On Direct they are 4% and 6%. Direct asks for the biggest gain with the least room.
| Route and phase | Target | Daily loss limit | Maximum loss | Target as a share of the maximum loss |
|---|---|---|---|---|
| Classic Phase 1 | 8% | 5% | 10% | 80% |
| Classic Phase 2 | 5% | 5% | 10% | 50% |
| Direct | 10% | 4% | 6% | 167% |
The daily limit is 5% (Classic) or 4% (Direct) of that day's starting equity, measured on equity, and it is worked out again each day. The maximum loss is a fixed share of the starting balance and never moves, so it does not rise when you make money. The dollar figures for each size are on the rules page.
Read the last column as "how far you have to climb compared with how far you may fall". On Classic Phase 2 you climb half as far as you may fall. On Direct you climb one and two-thirds times as far as you may fall. Neither route is easier overall, but they suit different styles. A trader who takes a few trades a week with small risk can use the Direct target. A trader who needs room for variation may prefer the wider limits of Classic.
The ratio to the daily limit tells you a similar thing. The Classic Phase 1 target is 1.6 times the daily limit, so it takes more than one good day. The Direct target is 2.5 times the daily limit. The Classic Phase 2 target equals the daily limit. Put together, they show that no phase can be cleared by one oversized day without also exposing the account to a limit.
What does a profit target mean in trades?
A profit target is a number of risk units. If you risk 1% of the account per trade, an 8% target is 8R, where R is one unit of risk. Risk 0.5% and the same target is 16R. The target in dollars stays the same; what changes is how many trades it takes and how many losses you can absorb on the way.
| Risk per trade | Classic Phase 1 target (8%) | Classic Phase 2 target (5%) | Direct target (10%) |
|---|---|---|---|
| 0.25% | 32R | 20R | 40R |
| 0.5% | 16R | 10R | 20R |
| 1% | 8R | 5R | 10R |
The same risk gives a different distance to each loss limit. At 0.5% per trade, the daily limit is 10 losses away on Classic and 8 on Direct, and the maximum loss is 20 losses away on Classic and 12 on Direct. At 1%, those become 5 and 4 losses to the daily limit, and 10 and 6 losses to the maximum loss.
This is why a low risk per trade is not timid. A 10R target at 1% on Direct sits next to a 6-loss floor, and a bad week can erase a good month. At 0.5%, the target is 20R but the floor is 12 losses away. Nobody has to choose the smallest risk, and the position sizing lesson shows how to set it from your stop distance.
Worked example: a $50,000 account on each route
Take a $50,000 account risking 0.5% per trade, which is $250, with a plan that aims for twice the risk, so a winner is worth $500. The figures are before costs and use round numbers for clarity.
- Classic Phase 1: the target is 8% of $50,000, which is $4,000, or 16R. The daily limit on the first day is $2,500, and the maximum loss floor is $45,000, which is $5,000 below the start.
- Direct: the target is 10%, which is $5,000, or 20R. The daily limit on the first day is $2,000, and the floor is $47,000, which is $3,000 below the start.
- The losses the account can absorb: on Classic, 10 losses reach the daily limit and 20 reach the floor. On Direct, 8 reach the daily limit and 12 reach the floor.
- Net winners needed with no losses at all: 8 winners of $500 on Classic ($4,000) and 10 on Direct ($5,000). Real sequences contain losses, so the true number of trades is higher.
- With a 40% win rate and the 2:1 payoff, each trade is worth 0.4 × 2R minus 0.6 × 1R = 0.2R, or $50. Classic Phase 1 needs 16R ÷ 0.2R = about 80 trades. Direct needs 20R ÷ 0.2R = about 100 trades. The win rate here is an example, not a forecast.
Now look at the days. The minimum is 3 trading days per phase. If the Classic plan takes 80 trades at two trades a day, that is 40 trading days. If a trader tried to finish in the minimum 3 days, they would need 16R in about three sessions, around 5R a day, and a 5R losing day at the same risk is $1,250, half of the first day's $2,500 limit. A high target pace and a tight limit leave little room for error.
Simulated trades carry trading costs, as they would on a live account: a commission when a trade opens and when it closes, a price markup on some symbols, and holding costs on positions kept overnight. Costs mean the real target is somewhat farther away than the table shows, because every trade starts a little behind. The risk to reward ratio guide shows how win rate and payoff set expectancy.
Does a profit target apply after the evaluation?
No. The reward stage has no profit target, and the two loss limits still apply there. The target is the gate between the evaluation and the reward stage, not a recurring monthly number.
After the final phase, trading continues under the same loss limits, and rewards follow the published reward split and the programme terms. Rewards depend on performance and eligibility. The lesson on moving from the challenge to the reward stage covers the change in practice, and the guide to funded trading accounts explains the vocabulary.
One useful habit is to practise the reward-stage mindset during the challenge. Without a target to chase, the whole job becomes keeping losses inside the limits. A trader who sizes from the stop and stops for the day at a set loss during the challenge already trades the way the reward stage needs.
How do you read a prop firm profit target at any firm?
To compare firms, look at four things on each rules page before you look at the price: how the target is measured, how many phases there are, what the loss limits are, and how many trading days are needed. A lower target with tighter limits can be harder than a higher target with wide ones.
- Check whether the target is a percentage of the starting balance or a fixed dollar amount, and whether each phase has its own.
- Check how the daily loss limit is calculated: from the starting balance, or from each day's starting equity, and whether it counts open positions.
- Check whether the maximum loss is fixed or trails your highest balance. A trailing floor rises as you win, so the room above it can shrink while the account grows.
- Check the minimum trading days, and whether any rule limits how much of the target one day can contribute.
Divide the target by the room you have. That one ratio, the last column of the earlier table, tells you more than the headline percentage. The drawdown guide explains daily and maximum limits and the difference between a fixed floor and a trailing one.
How the profit target works on CMC Funded
On CMC Funded the target is a percentage of the phase's starting balance, the daily limit is worked out afresh each day from that day's starting equity, and the maximum loss is a fixed floor. Open positions count against the daily limit at every moment, whether or not you have closed them.
For a $25,000 Classic account the Phase 1 target is $2,000 against a first-day daily limit of $1,250 and a floor of $22,500. For a $25,000 Direct account the target is $2,500 against $1,000 and $23,500. Reaching a limit ends the account, with no warning stage.
News trading is allowed, and overnight and weekend holding are allowed with holding costs. There is no time limit. The target itself can therefore be approached at your own pace, which is why a plan built around risk per trade, a daily stop and a journal is more useful than a plan built around the date. Leverage is chosen at purchase and does not change the target or the limits. Higher leverage magnifies both gains and losses, because it lets a position move the account by a larger share for the same price change.
The daily loss and maximum loss lesson walks through how the two limits interact with the target, and the position size calculator turns your stop into lots.
Common mistakes
- Sizing to the target. Starting from "I need $2,000" tends to produce bigger trades than starting from "I can afford to lose $125".
- Treating the Phase 2 target as a share of what Phase 1 earned. It is measured from the starting balance of that phase.
- Ignoring the minimum trading days. A strong first session does not clear the phase on its own.
- Treating the percentage target as the same effort on every route. Direct asks for 10% with a 6% maximum loss, a ratio Classic Phase 1 does not share.
- Pushing size near the end of a phase. A trade sized up to finish quickly puts a larger share of the remaining room at risk.
Questions traders ask
What is the profit target on CMC Funded?
On the Classic route it is 8% in Phase 1 and 5% in Phase 2. On the Direct route it is 10% in a single phase. Each target is a percentage of the starting balance of the phase, so $2,000 on a $25,000 Classic Phase 1 account.
Can you pass a phase in one day?
No. Each phase needs trades on 3 separate days, so one session cannot clear it even if the target is reached on that day. The loss limits also make a single very large day risky, because the daily limit is measured on equity and counts open positions.
Does reaching the profit target mean a reward is certain?
No. Reaching the target moves you to the next stage under the published rules. Rewards depend on performance, eligibility, verification and the programme terms. The target is a step in the evaluation and says nothing certain about what follows.
Does the target change if I choose different leverage?
No. Leverage is chosen at purchase and the price is the same at every leverage, and the target is a percentage of the starting balance whatever leverage you pick. Leverage changes how much margin a position uses. Higher leverage magnifies both gains and losses.
Next steps
Set your risk per trade with the position size calculator and read how the limits interact in the daily loss and maximum loss lesson. The full list of targets and limits is on the rules page, and the steps from purchase to reward stage are on the how it works page.
You can compare the Classic and Direct routes on the challenges page.