Below, you’ll find answers to some of the most common queries about SoFinX’s Proprietary Trading Competition and insights into the world of proprietary trading.
General Information about Proprietary Trading
Q: What is proprietary trading?
A: Proprietary trading, often referred to as prop trading, occurs when a firm trades stocks, derivatives, bonds, commodities, or other financial instruments with its own money, rather than using clients’ money.
Q: How does proprietary trading differ from regular trading?
A: Unlike regular trading, where traders execute traders and profits, prop traders use the firm’s capital to make trades and earn profits from the trades themselves.
About the Competition
Q: What is the SoFinX Proprietary Trading Competition?
A: The SoFinX Proprietary Trading Competition is a global event designed for traders to demonstrate their skills in strategy and social trading. It offers a risk-free platform to trade, learn, and compete for a total rewards pool of $60,000.
Q: How is the competition structured?
A: The competition is structured in stages:
1. Registration and Free Practice: Jan 8, 2024 – Jan 26, 2024
2. Round 1 Demo Prop Trading: Jan 29, 2024 – Feb 28, 2024
3. Round 2 Real Fund Prop Trading: March 6, 2024 – onwards
Q: Is there a participation fee?
A: Yes, there’s a one-time entry fee of 29.9 USDT to participate. This fee is refunded to those who advance to Round 2.
Trading in the Competition
Q: What is risk-free trading in the context of this competition?
A: Risk-free trading in our competition means trading with a $3,000 demo fund during Round 1. It allows participants to trade without the risk of financial loss.
Q: How does social trading feature in the competition?
A: Social trading is central to our competition. It offers a platform for traders to connect, share strategies, and learn from each other. This enhances the trading experience and skill development.
Q: What happens in Round 2 of the competition?
A: Round 2 elevates the challenge as participants trade with a real trading account funded with $3,000. This fund is provided by SoFinX. This stage tests the traders’ adaptability and resilience, offering a more realistic trading experience. Though the principle is non-refundable, they can take the profit and withdraw cash and take no risk for losses, all covered by SoFinX.
Q: What are the terms and conditions for the withdrawal of the profit?
A: As below:
1) Trade more than 30 days;
2) At least more than 50% profit of original capital;
Q: How much is the profit share?
A: Participants can earn up to 50% share of the profits they generate.
Participation and Registration
Q: Who can participate in the SoFinX Proprietary Trading Competition?
A: The competition is open to traders worldwide, regardless of their experience level.
Q: What are the eligibility criteria for participating in the competition?**
A: Participants must be 18 years or older and agree to the terms and conditions of the competition. They should also be able to fund their participation fee and have a basic understanding of trading.
Q: How can I register for the competition?
A: Registration is available on our competition page. Follow the link provided to sign up and secure your place: https://sofinx.com/2nd-trading-competition/
Q: Can participants join the competition after the official start date?
A: Late registrations may be accepted during the Free Practice stage but not beyond the start of Round 1 Demo Prop Trading. Please check the competition page for specific deadlines.
Q: What trading platforms and instruments are available in the competition?
A: The competition will use a specific trading platform, which will be accessible after registration. Participants can trade a variety of instruments, including stocks, derivatives, and commodities, as per the rules of the competition.
Q: Are there any educational resources provided to participants?
A: Yes, the competition includes access to various educational materials and resources to help participants refine their trading strategies and knowledge.
Q: Is there a limit to the number of trades or strategies participants can use?
A: There are no limits on the number of trades. However, participants must adhere to the competition’s trading guidelines and ethical trading practices.
Q: What happens if a participant faces a significant loss in Round 2 with real funds?
A: While Round 2 involves real funds, participants should trade responsibly, considering the risks involved. SoFinX DOES cover losses incurred during trading. But, please note, once the portfolio reaches a max drawdown of over 20%, the account will be closed and it means game over for this participant.
Ready to join the competition? Click below to register!