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Proprietary trading, often referred to as "prop trading," is a fascinating segment of the financial market where firms trade stocks, bonds, currencies, commodities, or other financial instruments using their own capital, rather than trading on behalf of clients. For those new to this concept, it might sound complex, but it represents an exciting opportunity for firms to maximize profits and control their financial strategies. This guide will provide a clear overview of proprietary trading, its key features, and the rewards and risks it entails.