TL;DR - Tournament rules use about forty terms that are rarely explained. The ones that decide results are the ranking metric (ROI, P&L or volume), what counts (valid volume, realized P&L, closed positions), the conditions to enter and be paid (KYC, excluded countries, minimum deposit) and the conditions on the prize (bonus, volume requirement, lock-up). Each term below has a one- or two-sentence definition and, where one exists, a link to the full explainer.

New entrants meet the same vocabulary in every rulebook, usually without definitions. This glossary collects the terms in one place, in plain language. Terms are grouped by where you meet them: the format, the score, the conditions, the prize, and the people.

Format

• Trading tournament / trading competition. A time-limited contest in which traders are ranked against each other and the top of the ranking is rewarded. What is a trading tournament.
• Championship. A long tournament, often a year, usually on real money with audited results, such as the WCTC or USIC.
• Paper trading. Trading with virtual money on real prices. Nothing is at risk.
• Demo account. A broker's paper-trading account.
• Simulator. Software that executes virtual orders on live or historical prices; used by paper contests and simulator leagues.
• Buy-in. An entry fee that funds the prize pool, as in poker.
• Free entry. No entry fee. It may still require a deposit or KYC.
• Prop-firm challenge / evaluation. A paid test on a simulated account; pass the rules and the firm funds you. Not a tournament: you compete against rules, not people.
• Live final. The last round played in person, often on stage and broadcast. Live trading finals.
• Season. A recurring cycle of events with an overall standing, such as an annual championship.
• Round / leg. One part of a multi-stage event, each with its own leaderboard.
• Division / bracket / tier. A separate leaderboard by account size, asset class or experience.

Score

• ROI (return on investment). Profit divided by starting balance, as a percentage. Fair to small accounts. ROI vs P&L vs volume.
• P&L (profit and loss). Profit in currency. Favors big accounts.
• Realized P&L. Profit from closed positions only.
• Unrealized P&L. Profit on positions still open.
• Trading volume. The total value of trades, buys plus sells. Rewards activity, not profit.
• Valid volume. The part of your volume the organizer counts, usually excluding bonus-funded trades, self-trades and API or market-maker accounts.
• Drawdown. The fall from a peak to a low in your account. Often a tie-breaker or a disqualification limit. Drawdown rules.
• Liquidation. Forced closing of a leveraged position when margin runs out. Liquidated accounts often rank last.
• Tie-break. The rule that orders traders with the same score, often lower drawdown first.
• Leaderboard. The live ranking. Final standings are published after the event and may differ.
• Round-turn. One complete trade: an opening and a closing order. Championships may require a minimum number.

Conditions

• KYC (know your customer). Identity verification. Often needed to enter, almost always to be paid. KYC tiers.
• Excluded countries / geo-block. Countries whose residents cannot take part or be paid. 91 of 150 catalogued events have at least one.
• Minimum deposit. The balance you must hold to take part.
• Minimum volume. The trading volume you must reach to qualify for a prize.
• Main account / sub-account. Many events count only main accounts, or count sub-accounts together with the main one.
• Registration. Pressing "Join" on the event page. Trades before it usually do not count.
• Wash trading / self-trading. Trading with yourself to inflate volume. Banned everywhere and a reason for disqualification.

Prize

• Prize pool. The total advertised prize money. Often a maximum, not a guarantee.
• Unlocked pool. A pool that grows with the field's total volume up to a ceiling.
• Futures bonus / trading bonus. A prize paid as trading credit rather than cash; usually must be traded before withdrawal.
• Volume requirement / multiplier. Trading a multiple of the prize before it can be withdrawn. Volume multiplier requirements.
• Lock-up. A period before the prize can be withdrawn. Lock-up periods.
• Settlement currency. The currency the prize is paid in. Settlement currency.
• Funded account. A prize in the form of a prop-firm account you can trade and take a profit share from.

People

• Squad / team / troop. A group whose combined result is ranked. Team trading tournaments.
• Captain. The person who forms and recruits a squad, often a streamer or community leader.
• KOL (key opinion leader). An influencer an exchange invites to captain teams or promote an event.
• Organizer. The exchange, broker, firm or company that runs the event and publishes the official results.

Frequently asked questions

What does ROI mean in a trading competition?

Return on investment: your profit divided by your starting balance, as a percentage. It is the fairest ranking for small accounts because it ignores account size.

What is valid volume in a trading tournament?

The part of your trading volume the organizer counts toward the leaderboard, usually excluding trades funded by bonuses or vouchers, self-trades and API or market-maker activity.

What is a futures bonus prize?

A prize paid as trading credit on the exchange rather than as cash. It usually has to be traded, sometimes with a deduction, before any profit from it can be withdrawn.

What is a buy-in tournament?

A tournament where each entrant pays a fee that funds the prize pool, like a poker tournament. The platform usually keeps a cut.

Related

• Trading competitions for beginners
• Trading tournament formats explained
• How to read tournament prize structure

External references: World Cup Trading Championships, U.S. Investing Championship, SEC investor education glossary.

Last reviewed 2026-10-20 by the trading-tournaments.com editorial team. Corrections via the Suggest a change form.