Proprietary trading, also known as prop trading, is a type of trading in which a financial institution or individual trader uses its own money to trade in financial markets for profit. In this type of trading, the trader seeks to make profits from market fluctuations, and the trader's success is based on their trading skills and market knowledge.

Proprietary trading requires substantial capital, and the traders must be able to bear the risks associated with the trade. Therefore, proprietary traders typically require funding to support their trading activities. Proprietary trading funding can come from a variety of sources, including banks, hedge funds, private investors, and proprietary trading firms.