Glossary · Prop Firms
Payout Cycle
The payout cycle is the recurring interval a funded trader must wait before submitting another withdrawal request. It runs through three stages, request, review, and receive, and resets only once a request is resolved (approved or rejected), not on a fixed calendar date.
Why it matters
The cycle length determines how often a trader can realistically convert simulated or live profits into cash, which shapes expectations around cash flow far more than the profit split percentage does. Many firms default to a longer standard interval and sell shorter weekly or bi-weekly cycles as paid add-ons. Meeting the interval alone isn't enough: minimum profit since the last payout, trading-day counts, buffer clearance, and consistency checks typically all have to be satisfied before a request qualifies, and first-time payouts usually require completed KYC verification.
Live data
Example
A trader runs two funded accounts, A and B, both on a 7-day interval, issued the same day. On day 8 they request a payout from Account A, approved the next day. Even though Account B has separately met its own profit and trading-day requirements, the trader cannot request from it until 7 full days after Account A's request was resolved. This is a personal payout interval: it binds the trader, not the individual account, so running multiple accounts does not multiply how often money can be withdrawn.
Common misconception
Traders often assume that hitting the minimum profit requirement means funds are available immediately. In practice the full interval must elapse first, and the request then goes through manual review, commonly a few business days, before anything is released. It's also the resolution of that request, approval or rejection, that restarts the clock for the next cycle, not the date the account was funded or last topped up.
Related terms
Profit split, Profit target, Consistency rule, Daily loss limit
See also
For a real-world example of how a firm documents its payout policy in practice, see the FTMO firm profile.
Sources
Risk disclaimer: Trading carries a substantial risk of loss and is not suitable for everyone. Prop-firm evaluations charge fees and most traders do not pass. Nothing here is financial advice; figures can change, so verify current terms with the firm before purchasing.
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