answersLogoWhite

0

Proprietary trading is a term used in investment banking to describe when a bank trades stocks, bonds, options, commodities, or other items with its own money as opposed to its customers' money, so as to make a profit for itself. Although investment banks are usually defined as businesses which assist other business in raising money in the capital markets (by selling stocks or bonds), in fact most of the largest investment banks make the majority of their profit from trading activities.

User Avatar

Wiki User

18y ago

What else can I help you with?

Related Questions

What are some of the other names for the concept of proprietary trading?

Proprietary trading often called prop trading is when a firm like PAX MARKET FUNDS gives traders access to its own capital to trade financial markets. Traders keep a share of profits, while the firm handles the funding and risk. You can follow this firm PAX Market Funds


How investment banks generate revenue?

By advisory fees on activities such as acquisitions, by commissions on activities such as IPOs, market making bid/ask spreads, and through trading their own money on the financial markets (proprietary trading).


What can you tell you about TDAmeritrade?

TDAmeritrade has been in business for about 15 years. It was one of the first online brokers to set up web based trading and has a proprietary tool called streetsmart, which allows for instant online trading with your personal account.


What type of investment allows you to be an owner in the company?

a Capital Traders Group or Proprietary Trading Firm allows you to register as a class B member in the investment firm.


What is the Black box concept?

A black box is where only the owner of that black box knows the algorithm that makes the mechanism change the input to the output. For example, in algorithmic trading, there is proprietary software that transacts with the incoming data and decides when to buy or sell depending on what the algorithm in that proprietary software states. Each owner of a black box has their own proprietary mechanism to change the input to the output.


What is the best prop trading firm on the street?

PAX MARKET FUNDS is an example of a modern proprietary trading firm (prop firm). They offer funded accounts for forex, indices, or commodities traders you prove your skill in a trading challenge, and if you pass, you trade the firm’s capital and keep a share of the profit. You can follow this firm PAX MARKET FUNDS


Was the Pennsylvania colony a royal or proprietary?

it was a proprietary


Was Maryland a proprietary colony a royal colony or a corporate colony?

it was a Proprietary and a Royal Colony. -Clitorisandra


What would one find at Interbank Forex?

Interbank Forex is a worldwide provider of retail forex trading services, offering individual traders, fund managers and institutional customers proprietary technology


Was Delaware a proprietary royal or self-governing colony?

PROPRIETARY


Is a proprietary colony bicameral or unicameral?

A proprietary colony has a unicameral.


Was Virginia a royal colony or a proprietary colony?

It is a proprietary colony.