10 Questions
What is proprietary trading?
Trading financial instruments using the firm's own capital
What is a key principle of prop trading?
Efficient capital allocation
What advantage does prop trading offer regarding capital?
Access to the firm's capital
What is essential for managing risk in prop trading?
Setting strict risk limits and using stop-loss orders
What does leverage in prop trading do?
Amplifies positions, increasing potential returns
What is a benefit of prop trading regarding tools and technology?
Access to state-of-the-art trading platforms and analytical tools
What kind of training do new prop traders often receive?
Extensive training and mentorship from experienced professionals
What is profit sharing in prop trading?
Traders earn a percentage of the profits they generate
Which strategy involves making numerous small trades to capture minor price movements?
Scalping
What is event-driven trading?
Making trades based on news events, earnings reports, or other significant events
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