What is prop trading and how does it work?

what is proprietary trading (prop trading)?

Proprietary trading, commonly known as prop trading, is a model where a company provides capital for traders to trade the financial markets.

Instead of using personal funds, traders operate using the firm’s capital and can earn a share of the profits generated. At Hantec Trader, traders may receive up to 95% of the virtual profits as a performance-based reward, depending on the account type.

How does prop trading work at Hantec Trader?

1. Purchase a Challenge

Begin by selecting a challenge that matches your trading style, experience, and goals.

2. Demonstrate Your Trading Skills

Trade in a simulated environment while meeting the required objectives and following the program’s trading rules and risk parameters.

3. Receive Access to a Funded Account

Once you successfully complete the challenge, you will gain access to a simulated funded account.

4. Earn Performance Rewards

Eligible traders can withdraw a share of the profits generated while Hantec Trader manages the financial risk associated with the program.

Why do traders choose prop trading?

Prop trading can be an attractive option for traders who have a solid strategy and trading skills but prefer not to risk large amounts of personal capital.

Benefits of prop trading include:

• Access to larger trading capital
• Reduced personal financial risk
• Structured trading conditions and risk management
• Opportunities to scale account sizes over time
• Performance-based reward payouts

This creates a professional environment where traders can focus on consistency and long-term performance.

Does Hantec Trader offer instant funding options?

Yes. Hantec Trader also offers alternative funding models such as Instant Funding and Instant Lite and Instant24.

These programs allow traders to access a simulated funded account without completing a traditional evaluation or challenge process.

You can find the information for all our programs HERE - Our Accounts