Prop desk

Term for traders who use a dealer firm's capital to try to make profit for the firm. This is different than traders who work to fill customer orders (sometimes called "trading the flow"). A prop trader acts more like a hedge fund, where as flow traders are really more like wholesalers who buy bonds, mark the up a little, and then sell them. Its possible that bond salespeople may use the prop desk's positions as inventory, but that is not its primary purpose.