Prop trading, short for proprietary trading, occurs when a financial firm uses its own money to trade in the market instead of using clients' funds. Instead of making money by charging fees or commissions to customers, these firms aim to make direct profits from their trading activities. For traders, working with a prop firm offers a chance to use larger amounts of money, advanced trading technology, and professional tools that they might not have access to with their personal accounts. In return, the firm retains a share of the earnings, while the trader keeps the remainder. Example: For example, if you have a ... (full story)