I have a question about prop firms. It has likely been answered before, but I have had difficulty finding clear answers. The question is, how do prop firms pay you out? I have heard that they only payout from failed challenges, I have heard that they link accounts of profitable traders to live accounts to leverage investor capital, I have heard that some don’t payout at all… Also, what is an A-book prop firm, does that mean you are trading live funds? And finally, if I were to have a 500k account with The Funded Trader for example, what is the likelihood of me being paid out. I would like to know these things before investing in an expensive challenge.
Your answers are greatly appreciated.