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Definition of a prop firm

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Dallas, Texas
Trading Experience: Intermediate
Platform: TOS
Favorite Futures: AAPL, /ES, IWM, SPY Options
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xplorer View Post
I would like to try and clear some confusion when looking for the term "Prop trading firm".

In my mind, any proprietary trading firm is one that gets people on board to trade their (meaning the firm's) own money, with a split of any profits.

However there's a lot of self-styled "Prop firms" out there that claim to offer profit split, but only after going through their training courses, which usually entails paying them a significant hefty sum upfront.

To me that's not a prop firm. That's a training firm.

I'd be interested in hearing other's views on this.

You mean like all these combines that people spend money on? Definitely pipe dream “training” firms

Volatility is good for the market and trading.

Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul. - Van Tharp
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