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prop firm, short for proprietary trading firm, is a financial institution that trades securities, commodities, currencies, or other financial instruments with its own capital, rather than clients' funds. These firms typically hire skilled traders who trade using the firm's money, aiming to generate profits for both the trader and the firm. Prop trading firms often provide traders with access to advanced trading tools, technology, and strategies, offering an environment conducive to high-performance trading. In return, traders may receive a share of the profits they generate, creating an incentive for success and fostering a collaborative trading culture within the firm.