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Proprietary Trading

   Also found in: Wikipedia 0.02 sec.
Proprietary Trading
When a firm trades for direct gain instead of commission dollars. Essentially, the firm has decided to profit from the market rather than commissions from processing trades.

Notes:
Firms who engage in proprietary trading believe they have a competitive advantage that will enable them to earn excess returns.

See also: Trade

Proprietary trading
Principal trading in which firm seeks direct gain rather than commission dollars.

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