Proprietary firm traders, commonly referred to as “prop traders,” are indeed considered real traders. They engage in actual trading activities, executing trades in financial markets with the aim of generating profits. The distinguishing factor of prop traders is that they use the firm’s capital rather than their own, which sets them apart from retail traders who typically trade with personal funds.
Prop traders undergo rigorous evaluation processes and are often required to demonstrate their trading skills before gaining access to the firm’s capital. They are expected to adhere to the firm’s risk management strategies and are often provided with advanced tools, training, and support to enhance their performance.
While prop trading may differ in certain aspects from other trading forms, such as retail trading or institutional asset management, it still involves the core activities of market analysis, decision-making, and executing trades in live markets. Therefore, prop traders possess the skills and responsibilities that qualify them as “real traders” within the finance industry.
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