A profit target is the amount of profit you must make to pass one phase of a challenge. It is stated as a percentage of the phase's starting balance. On a $100,000 account with an 8% target, you must reach $108,000. The target does not move as you trade; it is fixed when the phase starts.
Two-step challenges usually set a higher target for phase one than for phase two. The firms we track include plans like FundedNext's Stellar 2-Step $100,000 plan, which sets 8% for phase one and 5% for phase two. Phase two restarts at $100,000, so its target is $105,000, not a further 5% on top of phase one's $108,000.
The target matters because it decides how much risk you must take. A high target pushes traders toward larger positions, which also brings them closer to the daily and maximum loss limits. A low target leaves more room for careful trading but still demands consistent gains.
The common trap is chasing the target in the final days. A trader sitting just below target often sizes up, takes a trade they would normally skip, and breaches a loss limit instead. We recommend planning the target across the whole phase, not the last day. Prop trading can cost you every fee you pay.