# Proprietary Trading

*Trading & Technical Analysis — Finicade finance glossary*

Proprietary trading is a firm trading its own capital rather than clients'. Bank prop desks were largely closed by the Volcker Rule, moving the activity to independent firms. The modern retail-facing version is different and worth distinguishing: firms that sell evaluation challenges to aspiring traders, where the revenue model can be the fees rather than the trading.

**Also known as:** prop trading, prop firm, prop shop

**Related terms:** [High-Frequency Trading](https://finicade.com/glossary/high-frequency-trading), [Algorithmic Trading](https://finicade.com/glossary/algorithmic-trading), [Statistical Arbitrage](https://finicade.com/glossary/statistical-arbitrage), [Investment Bank](https://finicade.com/glossary/investment-bank), [Hedge Fund](https://finicade.com/glossary/hedge-fund)

Source: https://finicade.com/glossary/proprietary-trading