Proprietary trading firms

Proprietary trading firms, often called prop firms, are organizations that trade financial instruments like stocks, bonds, or derivatives using their own money rather than clients' funds. Their goal is to generate profits through skilled trading strategies. Traders hired by these firms are typically given capital to trade with and are incentivized to perform well through profit-sharing. Unlike traditional asset managers, prop firms prioritize their own financial gain, often providing advanced technology, research, and risk management tools to maximize profitability. They play a vital role in financial markets by providing liquidity and helping to discover asset prices.