How Prop Firms make Money

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  • Опубликовано: 8 фев 2023
  • Proprietary trading occurs when financial firms such as investment banks, hedge funds, or brokerage firms choose to trade for market gain rather than seeking profits by trading for commissions on behalf of their clients. These institutions use their own capital to execute financial transactions instead of using their clients’ money. Although risky, prop trading can prove very profitable for financial institutions as they take all the returns from a trade as opposed to just earning a commission for processing their client’s trades.
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