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Glossary · Payouts

Payout cap

  • Also called
  • withdrawal cap
  • maximum payout
  • payout buffer

What it means

In a prop firm, a payout cap controls the size of each performance reward. Caps are common on instant funding accounts and futures programs, and on first payouts in general, and are sometimes raised after the trader has a payout history.

A cap is usually paired with a buffer, a level of profit that must stay in the account and is not withdrawable, so that the account does not sit at its breach level right after a payout.

Profit above the cap generally stays in the account for later cycles rather than being forfeited, but firms should state what happens either way.

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