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Questions and Answers
What is proprietary trading?
What is proprietary trading?
- Trading financial instruments using the firm's own capital (correct)
- Trading financial instruments using clients' money
- Trading only stocks
- Trading without any capital
What is a key principle of prop trading?
What is a key principle of prop trading?
- Avoiding all risks
- Using only fundamental analysis
- Trading without a plan
- Efficient capital allocation (correct)
What advantage does prop trading offer regarding capital?
What advantage does prop trading offer regarding capital?
- Limited personal funds
- Access to the firm's capital (correct)
- No need for any capital
- Only small positions allowed
What is essential for managing risk in prop trading?
What is essential for managing risk in prop trading?
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What does leverage in prop trading do?
What does leverage in prop trading do?
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What is a benefit of prop trading regarding tools and technology?
What is a benefit of prop trading regarding tools and technology?
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What kind of training do new prop traders often receive?
What kind of training do new prop traders often receive?
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What is profit sharing in prop trading?
What is profit sharing in prop trading?
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Which strategy involves making numerous small trades to capture minor price movements?
Which strategy involves making numerous small trades to capture minor price movements?
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What is event-driven trading?
What is event-driven trading?
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