What Is Proprietary Trading?

Henow1969

Well-known member
In the context of a bank or financial institution, proprietary or prop trading refers to trading with the institution's own funds. It means that the firm cannot use client deposits or other funds to conduct trades that would generate profits for the firm. As the firm uses its own funds in a prop trade, it also bears any potential gains or losses.
 
Proprietary trading is when a company or institution invests its own money in stocks, bonds, commodities, and other financial instruments. Proprietary Trading has a high risk factor, but it also has a high return potential.
 
 
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