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ARTICLE · 09 JANUARY 2025

Proprietary Trading In Turkey

Norton Rose Fulbright
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Proprietary trading ("prop trading") is where a firm invests its own funds for profit rather than using a client's money.

TurkeyFinance and Banking
Ceylan Necipoğlu
Ceylan Necipoğlu

Proprietary trading ("prop trading") is where a firm invests its own funds for profit rather than using a client's money. The primary aim of prop trading is profit rather than earning commission from processing trades.

Although this is a general definition for prop trading, the term is also used to refer to "virtual" trading. In the platforms offering prop trading, traders access virtual capital and trade it in real market conditions, instead of using their own financial resources.

The underlying reason for engaging in virtual trading is to allow the traders prove themselves. Prop trading firms allow retail traders to trade with the prop trading firms' funds and share a portion of the profits with them. However, traders need to prove their skills by taking on trading challenges, and most activities, even trading in funded accounts, happen in a simulated environment (1).

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