What is prop trading?

What is
prop
trading?

Prop trading is the principle of a financial company
when the main part of its activity is trading stocks,
currencies, commodity futures, bonds and
derivatives on these assets in financial markets
around the world with the company's own funds.

Source:
https://www.proptradefirm.com

Proprietary, private, prop trading (proprietary or
prop trading) is precisely the case where a financial
company prefers to generate profits directly from
market activity rather than from commissions with
minimal margin derived from client trading. Such a
company is focused on proprietary trading, where
it takes all profits from trades, not just
commissions.

A proprietary trading company, unlike a fund (a
hedge fund or an investment company) operates
with its own capital or the capital of a relatively
small number of participants and not to invest in a
limited number of securities or other financial
instruments with subsequent payment of
interests/dividends to its investors but uses its own
(or attracted) capital to give it to the most
successful traders of the company.

For the opportunities provided (mainly they
concern capital and technical means, such as
analytical platforms and trading terminals) trader
shares the predetermined part of the profits with
the proprietary company.