The third-party trading clause: what a firm can void, and when
A prop firm passing service is a contract about one clause. The trading is the visible part — the risk plan, the drawdown arithmetic, the sessions — but the clause is what decides whether the work survives contact with the payout desk. Most traders buy an evaluation, most providers sell one, and almost nobody reads the sentence that governs whether a second person was allowed to place those trades. This is a working note on that sentence: where it hides, the three shapes it takes, what a firm can actually do with it, and what a written answer should contain before any fee changes hands. The clause is rarely on the page you are reading Challenge pages are marketing. They describe profit targets, drawdown, the profit split and the fee, because those are the numbers that sell. The question of who is allowed to operate the account is a terms question, and terms live behind a link at the bottom of the site — frequently in a general "Terms of Use...