Author name: Alex Ledger

Proprietary Trading

Prop Trading vs Retail: Key Differences Explained

The world of financial markets is broadly divided into institutional players and individual participants. If you are serious about trading careers or simply want to maximize your profit potential, understanding the fundamental distinction between proprietary trading (Prop Trading) and retail trading is crucial. This tutorial explains the key differences in capital, risk management, technology, and […]

Proprietary Trading

What Is Prop Trading?

Prop trading, short for proprietary trading, is when a financial institution or a firm trades stocks, bonds, currencies, commodities, or other financial instruments directly from its own account, using its own capital, in order to make a profit. This is the fundamental definition. Unlike a typical brokerage, which executes trades for clients (and earns commissions),

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