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Prop Trading Firm

A proprietary trading firm that provides funded capital to traders who pass an evaluation, allowing them to trade the firm's money and keep a share of the profits.

Detailed Explanation

Prop trading firms (also called prop firms) have become a popular way for retail traders to access significant trading capital without risking their own money. Traders typically pay a one-time evaluation fee, pass a challenge by hitting a profit target while respecting drawdown limits, and then receive a funded account. The firm and trader split profits, with traders often keeping 80%–95%. Major prop firms include FTMO, FundedNext, and My Funded Futures.

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