prop trading vs hedge fund

Introduction: What Is Prop Trading Payout Ratio? When entering the world of proprietary trading, one of the first concepts beginners must understand is the prop trading payout ratio. This ratio defines how much of the profits a trader is entitled to keep versus what goes to the prop firm. Understanding this payout structure is crucial […]

Introduction: Understanding Prop Trading vs Hedge Fund Models In today’s dynamic financial markets, many aspiring traders wonder about the distinctions between prop trading vs hedge fund structures. Both models involve active market participation and sophisticated strategies, yet their goals, risk exposure, and compensation frameworks vary significantly. Understanding these differences can help you decide which path […]