The vast majority of prop firms have an evaluation process that traders have to pass to prove to the firm that they can make consistent profits and to get funded. Traders are considered contractors, not employees, therefore they do not receive a fixed wage, therefore profits they make from trading are their only source of income, at least as the prop firm is concerned. Proprietary firms (or prop firms for short) are firms that give traders access to the firm's capital in exchange for a share of profits that the traders' profits.
What is prop trading and what are prop firms? But first, let us talks about definitions. This guide explains why prop trading may be inconvenient for swing traders, what qualifications a prop firm should have to be viable for swing trading, and also provides a list of prop firms that swing traders may find suitable for their style of trading. In particular, swing traders may find it difficult to discover a prop firm that is suitable for them as limitations and restrictions that prop firms tend to have can make longer-term trading unviable. But prop trading is not suitable for every type of trader equally. Prop firms can attract many different types of traders and can offer them a good opportunity to trade with a sizeable capital without risking the traders' own money. The list of prop firms for swing traders.What qualities make a prop firm good of bad for swing traders?.What is prop trading and what are prop firms?.