Occupation: TRADER. The Trading Pit, i.e. proptrading of a new generation

Proptrading is practically unknown in Poland. Why? Hard to say. The opportunities it opens for traders are potentially great. It enters the market The Trading Pit, a new proptrading company based in Liechtenstein, which plans to make a significant revolution in this industry and offer traders even more. But let's start from the beginning.

What is proptrading?

Proprietary trading is a type of cooperation between a trader and a specialized financial company. How does it work in practice? The trader, for his part, offers his skills, and the company provides the entire infrastructure and opportunities, i.e. trading software, stock market data, tools and, above all, capital. In other words, the trader trades on behalf of the company, and the share of the profits earned is shared between both parties, while the risk of possible loss lies only with the proptrading company. The distribution of profits is different and is usually around 60-90% for the trader.

Proprietary trading - for whom and for what?

A trader may ask himself: “why do I need an external company if I can invest myself?”. Well, the benefits are many. Let's start with the fact that one of the most common reasons why a retail investor loses in the market is lack of an adequate level of capital. By paying too little amount to the account, e.g. USD 1000, we often want to earn at least enough to pay back the time spent on investing, or at least to make it a worthy alternative to a full-time job. We can assume that for a deposit of USD 1000 we would have to earn at least twice as much, i.e. ... 100%, and that's monthly (!). Because of this, we often trade too aggressively, feel too much pressure on the outcome and consequently lose.

A related problem is the lack of sound capital management. Even if we assume a maximum withdrawal of capital at the level of 20%, there is no executioner over us that would guard the assumed limits. In a moment of weakness, e.g. after a painful loss, it happens that a pseudo-solution to the problem comes to our mind: "I will increase the volume and make up for the losses quickly - now I will definitely succeed!". As a rule, it fails, and we end up with an even bigger minus

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Proptrading solves these two problems. First, we receive sufficiently large capital to be able to comfortably manage our position on the market. Secondly, we are watched over by a proptrading company that keeps the risk we take in check, e.g. through limits on the maximum withdrawal of capital or the volume used. An additional benefit is the fact that in the event of a loss on the market, we only lose our time, and the risk of losing capital lies only with the proptrading company.

The Trading Pit - what can a trader gain?

First of all - possibilities. Transparent rules have been established that allow traders with potential to spread their wings. We get access to platforms, tools, communities and capital. In return, offering our investment skills. However, no one asks us about the system, strategy or code of the machine. This know-howwhich remains with us until the end and in its entirety.

It is also a chance to enter the big world of investing and build your career as a trader. The company has a capital management license under Liechtenstein regulations, which makes it possible to even hedge fund manager. Fully legal and without unnecessary complications.

Take the Challenge and show how you trade

However, it is not the case that everyone willing receives capital for investments. We must first pass the Challengethat will test our skills. What is it all about? In short, you have to prove that you are fit. The rules are transparent and fair:

• Have you violated the set limits? You don't move on.
• Have you passed the Challenge? Welcome aboard a new trader - you're going Live!

However, taking part in the challenge is paid this fee is fully refunded if we pass it successfully so we don't need anything "to do". Various options and variants are available. We can choose between the market Futures and Forex (soon also Cryptocurrency i Projects). Each variant has certain rules, such as maximum drawdown (daily and total), minimum challenge duration or objective. The parameters vary depending on the selected option - the more expensive the challenge, the easier it is to implement the conditions. This whole process is designed to clearly check whether we are suitable - without any discretion in the form of sending statements from a few years ago or "picking" due to the strategy used.

Taking part in the challenge, we don't have to worry about anything - of course, except for the investment result. For futures, we are provided with both market data and software (choose from: MINUTES / Rithmic / Quantower). In the case of the market Forex trade takes place on MetaTrader. We receive account details within 15 minutes, after which we can start trading.

Futures market challenges. Source: The Trading Pit

Scaling plans in The Trading Pit - what is it all about?

Certainly, most traders would like to get access to as much capital as possible as soon as possible. After all, thanks to economies of scale, more money would end up in our pockets. However, let us remember that the risk lies mainly with the proptrading company. Therefore, in order not to take excessive risks from the very beginning of cooperation, but also to maintain transparency, the so-called scaling plans (scaling plans). These are nothing more than conditions with thresholds of goals and limits that will gradually make more and more capital available.

Thanks to the transparent offer, we know what to expect from the very beginning. We start modestly, with a few thousand euros, but ultimately we can have even 1 million euros (before leverage).

Proptrading, or a trader's career within reach

Trading without the risk of losing your own money, access to professional tools, work without set hours from anywhere in the world, and ultimately even the vision of having your own hedge fund. Sounds too good to be true? None of these things. Proptrading is an industry that offers traders with a lot of potential - but it also requires results from them. Do you want to find out if professional trading is for you? Take the Challenge and check it out.