What is Prop firm ?
A Prop Firm (Proprietary Trading Firm) is a company that provides traders with access to trading capital so they can trade in financial markets such as Forex, Gold, and Indices. Traders usually need to pass an evaluation or challenge by achieving a specific profit target while following strict risk management rules, including daily and maximum drawdown limits. Once they pass the challenge, they receive a funded account and can earn a percentage of the profits they generate, while the remaining profit goes to the firm. Prop firms allow skilled traders to trade with larger capital without risking a large amount of their own money.
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