A proprietary trading firm, commonly referred to as a prop firm, is a financial institution that provides traders with access to capital to trade in various financial markets. Instead of using their own money, traders are given funds by the firm, and in return, the firm takes a percentage of the profits generated. Prop firms usually have specific guidelines and risk management rules that traders must follow.

To get funded by a prop trading firm, you typically need to pass a series of evaluations or trading challenges designed to test your trading skills and risk management. These evaluations vary from firm to firm but generally involve trading a demo account with set rules on drawdowns, profit targets, and consistency. Once you successfully complete the evaluation, the firm will provide you with a funded trading account.

Profit splits in prop trading firms generally range between 50% and 90% in favor of the trader, depending on the firm's policies and the trader's performance. For example, a firm might offer a 70/30 split, where the trader keeps 70% of the profits, and the firm takes 30%. Some firms offer higher splits as an incentive for traders who perform exceptionally well.

The asset classes you can trade depend on the specific prop trading firm you join. Most firms offer access to popular markets such as forex, stocks, commodities, and indices. Some firms also allow trading in cryptocurrencies, options, and futures. It's important to check with the firm to see what asset classes they support before joining.

If you violate a firm's trading rules—such as exceeding the maximum drawdown limit, not adhering to risk management guidelines, or trading outside the allowed hours—you may face penalties such as losing your funded account, being disqualified from further trading with the firm, or having to start the evaluation process over. Each firm has its own set of rules, so it’s crucial to understand them fully before trading.