modern trading has long ceased to be exclusively in a personal occupation - more and more often in the financial market they talk about Prop trading, which opens the way to professional growth and access to large capital. This trade model gives a chance to earn in global markets without risking its own means.
what is Prop trading
Prop Trader is a trader that has passed in the company that confirmed its skills and discipline. He is obliged to comply with risk management, daytime and weekly limits, and demonstrate stable results. The test can be free or paid (in the format of Chellenge).
Most of the known platforms give the trader the trial period during which it is necessary to achieve a certain profitability without exceeding losses. After the successful passage of the qualifying stage, the trader receives a funded account with capital from 10,000 to $ 200,000 or more.
the advantages and features of the prop of trading
Why is the model of prop trading is becoming more and more popular? Here are its main advantages:
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You can work with a deposit of tens or hundreds of thousands of dollars.
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low risks - personal funds are not used.
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transparent conditions - companies clearly prescribe all the rules.
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Profit section - the trader receives income depending on the effectiveness.
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training and support - some companies offer analytics, webinars and community.
In addition, participation in Prop trading helps traders discipline and adhere to a clear strategy. It is important to remember that each error can lead to loss of account, so risk management is a key element of success.
how to choose a proper company
The company's choice is an important stage. Here it is necessary to take into account the conditions of selection (one -stage or two -stage challenge), the cost of participation and potential bonuses, the level of support and the availability of a personal account, the methods of withdrawal of profit and the conditions of payments, the availability of restrictions on strategies (for example, a ban on arbitration or scalping).
It is also worth studying the reviews of other traders to avoid unscrupulous companies.
who suits Prop trading
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