The concept of trading, particularly in prop firms, revolves around buying and selling financial instruments such as stocks, currencies, or commodities with the goal of making a profit. In prop trading, firms provide capital to skilled traders, allowing them to trade on the firm’s behalf while sharing a percentage of the profits. Unlike retail traders, who use personal funds, prop traders benefit from larger capital and leverage, which can lead to significant earnings. The firm assumes the risk, but traders are expected to follow strict risk management guidelines to protect the capital provided. This model fosters high-performance trading strategies.