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Questions and Answers
What is the primary goal of a proprietary (prop) trader?
What is the primary goal of a proprietary (prop) trader?
- To trade their personal capital
- To trade the firm's capital to generate profits (correct)
- To provide financial advice to clients
- To manage the firm's administrative tasks
What happens at the market's opening bell at 9:30 AM?
What happens at the market's opening bell at 9:30 AM?
- Traders execute their pre-planned strategies and stay alert to market movements and news developments (correct)
- Traders close their positions and stop all trading activities for the day
- Traders review their performance and analyse their past trades to learn from mistakes
- Traders document their trades and record the details of their trading activities
Why is continuous risk assessment crucial for prop traders?
Why is continuous risk assessment crucial for prop traders?
- To increase their trading volume
- To limit potential losses and manage exposure (correct)
- To avoid regulatory compliance
- To enhance their networking opportunities
What activities are typically done around midday by prop traders?
What activities are typically done around midday by prop traders?
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What characterizes the afternoon session for prop traders?
What characterizes the afternoon session for prop traders?
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What is the primary focus during the post-market review?
What is the primary focus during the post-market review?
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Why is detailed reporting important for prop traders?
Why is detailed reporting important for prop traders?
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What is the final activity of the day for a prop trader?
What is the final activity of the day for a prop trader?
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What is the benefit of networking and collaboration among traders?
What is the benefit of networking and collaboration among traders?
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What key qualities are required for success in prop trading?
What key qualities are required for success in prop trading?
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