Proprietary Trader

Definition - What does Proprietary Trader mean?

Proprietary traders are professional currency traders who are hired by banks to trade for the bank’s own portfolio. These traders use the bank’s capital to place trades on the interbank market for the purposes of hedging or profiting on the forex market. Proprietary traders are sometimes referred to as bank traders.

ForexDictionary explains Proprietary Trader

Proprietary traders are there to make money for the bank that employees them. Proprietary traders are distinct from flow traders - bank traders that handle the execution of large customer orders. Proprietary traders may use a range of strategies to create value for their employers. Andy Krieger became famous as a proprietary trader when he sold short the entire money supply of New Zealand using options. His trade made millions for his employer, Bankers Trust.
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