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Proprietary Trading

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Dictionary Says

Definition of '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 from commissions from processing trades.
Investopedia Says

Investopedia explains 'Proprietary Trading'

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

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