Prop Firm
A prop firm, short for “proprietary trading firm,” is a company that uses its own capital to trade financial markets. Prop firms can trade a variety of instruments, including indices, stocks, futures, options, and currencies. These firms typically employ traders who are responsible for making trades on behalf of the firm.
Prop firms may also provide training and support to traders, as well as tools and resources such as trading software and access to market data. Prop firms often operate on a performance basis, meaning that traders are typically paid based on the profits they generate for the firm.
