Glossary · Payouts
Performance reward
- Also called
- reward
- virtual profit share
- payout
What it means
In a prop firm with a simulated funded stage, the trader is not withdrawing their own profit from a brokerage account. The firm calculates a reward based on simulated results and the profit split, and pays it under its own terms.
Using performance reward, or virtual profit share, in terms and site copy keeps the description accurate. It signals that the payment is made by the firm under contract, not a return on capital the trader invested.
How the reward is characterized can matter for tax, payments and regulation, which vary by jurisdiction; take advice before settling the wording in your terms.
Related terms
Read these next.
Profit split
Simulated funded account
Payout cycle
Risk disclosure
Marketing claims
On your website
Where this shows up on a prop firm site.
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