Proprietary trading

From ACT Wiki
Revision as of 13:17, 17 July 2022 by imported>Doug Williamson (Add link.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

Trading by a financial institution on its own behalf, rather than acting primarily as an intermediary.


It is potentially highly profitable, but also risky.

Prudential regulations restrict the amount of proprietary trading that banks are allowed to do, in order to reduce the risk.


Sometimes abbreviated to 'prop' trading.


See also