Proprietary trading firm

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A proprietary trading group is a group of traders that trades the capital of the firm. The firm puts up this capital and provides risk management, computer (IT) support, office space, and brokerage arrangements. This is in contrast with a trading arcade, which provides office space, computer support, and brokerage, but does not provide trading capital. It is a group environment for trading your own money. [1]

The firm derives its profits from the market rather than from commissions. Firms that engage in proprietary trading believe that they have a competitive advantage that will enable them to earn excess returns.[2]

Proprietary Trading Firms[edit]

The organization Traders Log [1] offers a Proprietary Trading Firms Directory on its web site that gives further links to the firms themselves.[3]

Some proprietary trading firms noted by Traders Log are:

References[edit]