A profit target is the gain a simulated account must show before an evaluation phase counts as passed. It is measured against the account's nominal size — the notional balance the simulated account is opened with — and not against the fee paid to enter. The two numbers are unrelated in kind: the fee is an amount actually paid, while the nominal size is a reference figure used to scale the rules. Because the target is expressed as a proportion of that reference figure, the same proportional target represents a different absolute gain on each account size offered, while the underlying trading requirement stays the same in relative terms.
The target is never the whole rule. It must be reached without the account touching either loss limit at any point along the way. The daily limit is typically measured against a balance or equity mark set at the start of each trading day, and the overall limit against the starting balance or against the highest balance reached, depending on whether the firm applies a static or trailing method. Because both limits are evaluated continuously, including on open positions, an account can hit its target and still fail if an intraday swing earlier in the run breached a limit. The binding constraint is therefore the ratio between what must be gained and what may be lost, not the target read alone.
Multi-phase evaluations usually set a higher target in the first phase and a lower one in the second, while keeping the loss limits unchanged. The stated rationale is that the first phase tests whether a gain can be produced at all and the second tests whether the same approach repeats under the same risk constraints rather than reflecting a single favourable run. The lower second target narrows the gap between reward and permitted loss, which makes the second phase a tighter test in risk terms even though the headline number is smaller.
A common misunderstanding concerns timing. Most rule sets require the target to be reached, not held: once account equity or closed balance touches the level, the phase is met, and a subsequent decline does not undo it. Some firms assess on closed trades only, so floating gains on open positions do not count until the position is closed. Minimum trading day requirements can also delay assessment after the target is technically reached.