Profit split
In a prop firm, a profit split is a method of distributing the profits earned by the firm among its traders. This can be done in a variety of ways, such as by dividing the profits equally among all traders, or by using a formula that takes into account factors such as the amount of capital each trader has contributed, the amount of risk they have taken, and their individual trading performance. Profit splits are typically used in prop firms to incentivize traders to perform well and to align their interests with those of the firm. The exact terms of a profit split will depend on the specific prop firm and may vary from one firm to another.
