Prop Firm
Prop Firm — A proprietary trading firm that funds approved traders with company capital in exchange for a profit split.
- Quick definition: A proprietary trading firm that funds approved traders with company capital in exchange for a profit split.
- Category: Prop Firm Basics
Full Definition
A prop firm (proprietary trading firm) is a company that allocates trading capital to traders who pass an evaluation challenge. The trader keeps a percentage of the profits (typically 70-90%) and the firm keeps the rest. Modern retail prop firms like FTMO, FundedNext, and FXIFY operate online and target retail traders worldwide.
Related Terms
FTMO · FundedNext · Profit Split · Prop Firm Challenge
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