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Quantitative Finance · Glossary

What is Proprietary trading firm?

Definition 1.4 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 1 — What a Trading Firm Does

A proprietary trading firm trades only its owners’ capital, has no clients and charges no fees: its entire revenue is its trading profit. Most electronic market makers are proprietary firms; many proprietary firms also run strategies that take liquidity instead of providing it.

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