Proprietary trading represents a business framework where firms allocate their capital to traders, who then engage in trading activities. The profits generated from these activities are shared between the firm and the trader. This arrangement is mutually beneficial: it provides traders with access to significantly larger capital than they might have on their own, allowing them to amplify their trading strategies, diversify their investments, and manage larger positions, thereby increasing the potential for higher profits. Even though traders share a portion of their earnings with the firm, the enhanced profit potential from larger capital typically outweighs this cost. Conversely, the firm benefits by earning a return on its investment, essentially gaining passive income through the traders' expertise. Firms typically screen potential traders through an evaluation process, commonly involving a trading challenge on a simulated account, which is often accompanied by a participation fee