The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “What is proprietary trading?” If you've been looking online or if you've been searching for questions surrounding proprietary trading or prop trader, proprietary trader, etcetera, then this hopefully will help answer the question for you. Proprietary trading is actually very simple to understand because in many cases, if you are a regular retail investor and you're making your own decisions about where you allocate your money and how you allocate your portfolio, you’re effectively already performing proprietary trading. All proprietary trading is, is somebody or some firm trading their own capital for gains. Again, like I said, as a retail trader myself and probably you if you’re listening to this, you already are a proprietary trader. You’re trading your own money for your own personal capital gain benefit. This is different from somebody else trading client money for commi