A proprietary trading firm (prop firm) provides traders with capital to trade financial markets. Instead of risking your own money, you trade the firm's money and keep a percentage of profits (typically 50-95%). To access funding, you must pass an evaluation called a 'challenge' where you demonstrate you can trade profitably within strict risk limits. The prop firm industry has grown significantly since 2015, with firms like FTMO, FundedNext, and Topstep collectively paying out hundreds of millions of dollars to traders.