Definition
Sim-funded
A 'funded' account that runs on simulated execution: real payouts, demo fills.
Most retail prop accounts are sim-funded: your orders never reach a live market. The firm mirrors real prices, applies its rules, and pays profits from company revenue.
This is why execution feels clean (no real slippage from your own size) and why firms police strategies that exploit simulation quirks — latency arbitrage, tick scalping, feed gaps.
Related terms
General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.