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Proprietary trading
Practice of trading financial instruments using a firm's own money From Wikipedia, the free encyclopedia
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Proprietary trading (also known as prop trading) occurs when a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm's own money (instead of using customer funds) to make a profit for itself.[1]
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Proprietary traders may use a variety of strategies such as index arbitrage, statistical arbitrage, merger arbitrage, fundamental analysis, volatility arbitrage, or global macro trading, much like a hedge fund.[2]
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Famous traders
Trader Nick Leeson took down Barings Bank with unauthorized proprietary positions. UBS trader Kweku Adoboli lost $2.3 billion of the bank's money and was convicted for his actions.[3][4]
Armin S, a German private trader, sued BNP Paribas for 152m EUR because they sold to him structured products for 108 EUR each which were worth 54 00 EUR.[5]
Notable proprietary trading firms
- Akuna Capital
- Citadel Securities
- DRW Trading Group
- Flow Traders
- Global Trading Systems
- Headlands Technologies
- Hudson River Trading
- IMC Financial Markets
- Jane Street Capital
- Jump Trading
- Optiver
- PEAK6
- Quantlab
- Radix Trading
- Susquehanna International Group
- Tibra
- Tower Research
- Tradebot
- TransMarket Group
- Virtu Financial
- XTX Markets
See also
References
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