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Glossary

What is Buffer?

Updated 2026-10-26

Short answer

A buffer is profit a firm holds back from your payout calculation, so the amount you can withdraw is less than the profit shown.

A buffer is a slice of your shown profit that a firm holds back when it works out what you may withdraw. Your dashboard may show $2,000 in profit while only $1,500 counts toward a payout request, because $500 is held as a buffer. The buffer is not a fee and it is not lost forever; it is a cushion the firm keeps against later losses before it releases the rest.

Buffers take different forms. Some firms hold back a fixed part of shown profit on certain plans. Others tie the buffer to a risk number: BEM Funding's One Only plan, for example, keeps at least half the daily drawdown amount as a buffer. The firms we track also include plans where part of shown profit is held as a buffer without a fixed figure published.

This matters because the buffer decides what a payout request actually pays. A trader who plans spending around the dashboard profit will be short by the buffer amount, and a trader who requests the full shown profit will have the request cut down.

The common trap is treating dashboard profit as withdrawable cash. We recommend checking the payout page for a buffer rule before you count any profit as money in hand. Prop trading can cost you every fee you pay.

Example

Worked example: in this example, your dashboard shows $2,000 in profit, but $500 is held as a buffer, so only $1,500 counts toward your payout request. On an 80% split, your payout is 80% of $1,500, which is $1,200, not 80% of $2,000, which would be $1,600.

Related terms

Prices are list prices from each firm's own site at our last update. Rankings are never paid. Prop trading can cost you every fee you pay.