Proprietary trading, or prop trading, involves financial firms trading their own capital in the financial markets, rather than executing trades on behalf of clients. Proprietary traders aim to generate profits for their firms by leveraging various trading strategies, including quantitative analysis, algorithmic trading, and market speculation. Prop trading firms typically employ skilled traders who use sophisticated technology and analytical tools to identify profitable opportunities in the market. Successful proprietary trading can result in significant profits for the firm, but it also involves risks, and traders must adhere to strict risk management protocols to mitigate potential losses. Traders engage in trading activities using this provided capital. Profit Sharing: prop traders are entitled to a share of the profits they generate, typically up to ~75%. This profit-sharing arrangement incentivizes traders to trade profitably and manage risk effectively.