Proprietary trading is one of the ways of organizing the work of a financial company. Prop company is an organization that has its own or investor funds. The main task and the reason for the existence of such a company is the generation of profit for the existing capital. Profits are generated by trading on the stock exchange. Props are developing its traders and providing them profitable trading strategies.
What is propshop
We work in the format of proprietary trading company - we select talented traders for various investment projects.
You can become one of our prop traders and trade on company's funds.
Trade, analyze, improve - and we will increase your BP and risk.
The better you trade - the more profit you get.
It is necessary to pass the selection program, meet the requirements for the target profitability and follow the rules of risk management or provide us with your existing track record.
Who are we looking for?
Traders with experience on the NYSE, RTS, Forex or beginners. Most important - the desire to learn and delve into the essence of companies businesses, ability to analyze information and make decisions in stressful situations.
Does it sound like you?
What to do if you have absolutely no experience, but you feel that you can do it?
Fondexx is ready to provide basic training on preferential terms. The course lasts 2 weeks and consists of 6 online classes, including the theory and practice of stock trading. Are you ready to learn?
how the propshops work
Proprietary trading differs from other types of companies working in the financial markets in a way that in this case trading activity is conducted solely on the firm's own funds, rather than on the money of clients brought under management, as happens in companies who work on the principle of trust management.
The proprietary company provides full financial support to the prop trader. Think about it as a job.
The firm, allowing the trader to trade on the company's money, carries certain risks and its interest lies in the fact that the trader gives the company part of the earned profit. As a rule, the more successful a trader becomes and the more money he earns, the less profit he gives to the company. The company generates profit on capital, often the yield from prop-trading can significantly exceed the index yield. Usually, the comparison is made with the S&P 500 - SPDR S&P 500 ETF (ticker SPY). And it also diversifies its risks by distributing assets among a large number of managers.
Income of a trader directly depends on his results. The trader's monthly income does not have any restrictions: from zero to hundreds of thousands of dollars.
It is important for a novice trader to know the specifics of paying a profit in prop-trading:
- According to the rules of business, the trader's profit is paid with a time lag of 1 month.
- The trader receives % of the earned money. This % is called Payout and can vary from 50% to 90%.