1. Market Structure and Accessibility
  2. Nature of Contracts
  3. Risk and Strategy Complexity

Can you envisage finally kicking off your trading career, with $50,000 of capital to trade, for under $50? This scenario is entirely feasible if you choose to partner with a proprietary trading firm. Engaging in day trading futures with prop firms can be an exciting and lucrative avenue, with the firm providing access to capital, sophisticated trading tools and a well-organised and supportive atmosphere in which to refine trading strategies and skills. In this FuturesPropTrading article, we explore everything there is to know about day trading futures with prop firms, from the fundamentals of how it works through to effective strategies for success.

Futures are a type of derivative contract created to streamline the buying or selling of specific commodity assets or securities, at a predetermined price and date. Known as futures contracts, these contractual instruments are actively traded on specialised futures markets like the CME Group. To trade futures contracts, you are required to use a brokerage account that has been approved for activities related to futures trading.

Proprietary trading, often abbreviated to prop trading, is when financial institutions (such as investment banks, brokerage firms and hedge funds) invest using their own capital rather than that of their clients. Traders use the firm’s capital to trade a broad spectrum of financial instruments, from stocks and bonds to currencies, commodities, and derivatives. As a result, the firm receives the entirety of the profits from its trades, as opposed to merely the fee from clients for executing trades.

Proprietary trading firms, commonly known as prop firms, use their own funds to trade on behalf of their clients. Such firms provide individuals looking to elevate their trading careers with access to capital, mentorship and training programs and cutting-edge technology. These advantages, combined with the distinctive prop trading business model, have contributed to the growing popularity of prop firms recently.