The short version
This is your one-page glossary. Skim the term, read the one-line meaning, and follow the deeper article when you want the full picture. Everything here is grouped the way a real account works: money, risk, orders, and the few terms that are specific to UZO.
If a single concept matters most, it is drawdown. Read that one first. The rest you can pick up as you trade.
How to use this glossary
Trading has its own vocabulary, and most of it is simpler than it sounds. Below, each term gets a plain definition in one or two lines. Where a number is fixed at UZO (like leverage), we state it. Where a limit depends on your product or the current market, we point you to your dashboard or to live pricing rather than guessing.
You do not need to memorize this. Bookmark it, and come back when a word trips you up. Most terms also have a dedicated article in this collection with worked examples.
Account and money terms
Term | What it means |
Balance | Your account total when no trades are open. It only changes when a trade closes. |
Equity | Your balance plus or minus the profit or loss on trades that are still open. This is the live number drawdown rules watch. |
Margin | The portion of your equity set aside to hold an open position. Leverage decides how much margin a given trade needs. |
Leverage | How far your capital can control a larger position. UZO is fixed at 1:100 across every product and size. |
Lot | The unit of trade size. One standard lot in forex is 100,000 units of the base currency. You can trade fractions of a lot. |
Spread | The gap between the buy and sell price. Real, third-party spreads are applied uniformly. See live pricing for current values. |
Commission | A real per-trade cost on some instruments, applied the same way to everyone. Shown on your dashboard. |
Balance and equity are the pair people confuse most. Balance is the settled total. Equity moves tick by tick while a position is open. When everything is closed, the two are equal again.
Risk and drawdown terms
Drawdown is the single most important idea in prop trading. It is how much you are allowed to lose before an account stops, and it comes in a few flavors.
Drawdown: a drop in your account from a high point. Stay above the limit and you keep trading.
Daily drawdown: the most you can lose in a single trading day. At UZO the daily window resets at 00:00 UTC.
Maximum drawdown: the overall floor your account cannot fall below.
Static drawdown: a fixed line that does not move. The Two Step uses a 12% static maximum drawdown.
Trailing drawdown: a line that follows your equity up as you profit, then locks. The Instant products use a 7% trailing maximum drawdown.
Single-trade loss: a cap on how much any one trade may lose, used on the Instant family.
Two more terms describe risk per trade. Stop loss is the price where a losing trade closes automatically to protect you. Take profit is the price where a winning trade closes automatically. The relationship between the two is your R:R (risk-to-reward) ratio: how much you stand to make versus what you risk.
Win rate is the share of your trades that close in profit. Expectancy is the average result per trade once wins and losses are blended together. A trader can have a low win rate and still be profitable if the wins are large enough, which is why expectancy matters more than win rate alone.
Order and trade terms
These are the mechanics of placing a trade. A pip is the smallest standard price move in a currency pair, and pip value is what one pip is worth in money for your position size. A profit target is the gain you need to reach to pass a phase. The One Step asks for 6%; the Two Step asks for 8% in total, split 3% then 5%; the Instant 24h asks for 3% inside a 24-hour window. The standard Instant and Instant Pro accounts have no profit target at all.
A quick example
If you risk 1% to make 2%, your R:R is 1:2. Win four of ten trades at that ratio and you are still ahead, because four wins of 2% outweigh six losses of 1%. That gap is your expectancy working in your favor.
UZO-specific terms
A few terms describe how UZO works specifically. UZO is a simulated, or Syn-Fi, firm: you trade against real live prices with simulated capital, so no live money is ever at risk while you trade. You reach a funded account one of two ways.
Evaluation (challenge): a one or two phase assessment where you hit a profit target while respecting the drawdown rules.
Instant funding: a funded account with no evaluation, governed instead by daily and trailing drawdown limits and a single-trade loss cap.
90/10 split: you keep 90% of the rewards you earn, the firm keeps 10%, fixed at every account size.
Dynamic Risk Shield: your locked floor trails your equity upward, then locks at your starting balance once the profit threshold is hit, so a bad run cannot erase progress you have already secured.
Scaling: your account can grow on a path of $100K to $200K to $500K to $1M, increasing 35% every four months up to $4M, with no new fee.
KYC via Veriff: identity verification, done through Veriff, only after you pass and request your first reward. You never verify to start.
The line worth remembering
When you earn a reward, you keep 90% of it. Your evaluation fee is also refunded on your first reward payout.
Related
What is leverage, and why 1:100?
What is a pip and how do I calculate pip value?
Prop trading glossary