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What is prop trading?

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Prop trading is the principle of a financial company when the main part of its activity is trading stocks, currencies, commodity futures, bonds and derivatives on these assets in financial markets around the world with the company's own funds. Source: https://www.proptradefirm.com

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Proprietary, private, prop trading (proprietary or prop trading) is precisely the case where a financial company prefers to generate profits directly from market activity rather than from commissions with minimal margin derived from client trading. Such a company is focused on proprietary trading, where it takes all profits from trades, not just commissions.

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A proprietary trading company, unlike a fund (a hedge fund or an investment company) operates with its own capital or the capital of a relatively small number of participants and not to invest in a limited number of securities or other financial instruments with subsequent payment of interests/dividends to its investors but uses its own (or attracted) capital to give it to the most successful traders of the company.

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For the opportunities provided (mainly they concern capital and technical means, such as analytical platforms and trading terminals) trader shares the predetermined part of the profits with the proprietary company.