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What is a Funded Trader and How Does it Work?

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Abhishek Kashyap

What if I told you that you could become a professional trader without using your own money? Sounds too good to be true, right? Well, that's the idea behind funded trading programs.


A funded trader is someone who trades using a company's capital rather than their own. These programs are offered by various proprietary trading firms or companies looking for talented traders to manage their funds. In essence, they provide aspiring traders with the opportunity to trade with a substantial amount of capital, which they would not have access to otherwise.


Funded trading programs typically have a selection process in place to identify individuals who have a proven track record in trading and the potential to be profitable. Once accepted into the program, traders are given a trading account with a specific capital allocation, ranging from a few thousand to several hundred thousand dollars.


Traders are then allowed to use this capital to trade in the financial markets, such as stocks, options, futures, or forex. The profits generated from these trades are usually split between the trader and the funding company based on a pre-agreed profit-sharing arrangement. This means that the trader is rewarded for their trading skills and profitability, while the funding company benefits from the profits generated.


Participating in a funded trader program has several advantages for aspiring traders. Firstly, it allows them to trade with much larger capital than they could afford to risk on their own. This provides the opportunity to make larger profits and experience trading in a realistic market environment.


https://ftpdeals.com/apex-trader-funding-review/

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Abhishek Kashyap
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