Proprietary trading firms (prop shops) are financial institutions that trade using their own capital rather than client funds. These firms employ quantitative traders, developers, and researchers to develop sophisticated trading algorithms and strategies.

Roles

Prop shops typically hire for roles such as quantitative traders, software engineers, data scientists, risk managers, and operations specialists. The work environment is fast-paced and highly competitive, with a strong focus on technology and mathematical modeling.

Compensation

Compensation at prop shops is often heavily performance-based, with traders receiving a percentage of the profits they generate. This can lead to very high earnings for successful traders, but also significant risk during market downturns.