Jul 24

Back To Home

Proprietary Trading

Proprietary Trading Definition

Proprietary trading definition is the act of companies profiting directly from the market rather than working on a commission basis. Several companies who have a competitive advantage in an area of trade often do this.

Proprietary Trading Meaning

Larger companies who have expertise in a certain market usually perform proprietary trading. For example, an energy company will have extensive knowledge of how oil and gas will be traded. These companies use this advantage to their benefit. It can however get out of hand when a large company has the ability to manipulate the trading amounts. For example, Enron exuberated too much control over the trading energy numbers. If done correctly, then proprietary trading can provide major benefits to a company and provide some well made profits over time.

If you’re interested in becoming the trusted advisor your CEO needs, then download your free How to be a Wingman guide here.

proprietary trading definition

[box]Strategic CFO Lab Member Extra

Access your Projections Execution Plan in SCFO Lab. The step-by-step plan to get ahead of your cash flow.

Click here to access your Execution Plan. Not a Lab Member?

Click here to learn more about SCFO Labs[/box]

proprietary trading definition

See Also:
Exchange Traded Funds
Currency Exchange Rates
How to Select Your Commercial Insurance Broker
Capital Gains
Credit Rating Agencies

See Dates