What is proprietary trading?
Proprietary trading is when a bank, firm or other any financial institution trades on its own account rather than on behalf of a customer.
The instruments traded can be anything from options, futures, currencies, derivatives etc.
Proprietary trading involves risking the firm’s capital, thus any profits or losses are borne entirely by the firm.
It is a highly sought-after job as traders don’t need to cough up with any capital, receives professional training from seasoned traders, and still get a share of profits if he makes money.
No surprise to see many fresh graduates applying for such a role, me included.
But the interesting aspect about trading is that your IQ has little to do with successful trading. I have seen traders who made millions with an O levels education, and traders who failed even with a masters degree.
The fact is:
Proprietary trading firms aren’t looking to hire candidates with the best educational background or the highest IQ.
So what are they looking for?
