Tuesday, 22 July 2025

The Role of Risk Management in Prop Trading Firms

Some prop firms directly employ traders as full-time staff members. These traders receive salaries, bonuses, and profit-sharing arrangements. The firm provides training, technology, and risk management systems. Prop firms earn money through successful trading activities. When traders generate profits, the firm retains a percentage while sharing the remaining profits with the trader. This profit-sharing model creates aligned incentives between the firm and its traders. Many modern prop firms operate funding programs where independent traders can access capital after demonstrating their skills. Traders typically complete evaluation phases before receiving funded accounts. Click here know more about #fundedtradingaccount

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