What is a Prop Trader (the real deal)?
Proprietary Trader. One who is involved with transactions with a securities firm that affect the firm’s accounts (or his own linked account within the firm) but not affecting the accounts of the firm’s clients. Strictly speaking a prop trading firm is one where you would trade the firm’s capital (and only their money). But today the most common so-called “prop firms” are ones where you put up $5,000, $10,000 or more and then you trade using 10:1 or 20:1 intraday leverage. These are also called “trading arcades” by (the) Hoi Polloi.
