Understanding Prop Trading and Futures Contracts for Aspiring Traders
Proprietary (prop) trading, known internationally as "nostro trading," involves trading with a company's or fund's capital rather than personal funds, typically through a funded account and under strict risk management rules. Futures contracts are a common instrument in this field. Aspiring traders are advised to look for courses with experienced, active traders, small study groups, and practical simulation before trading with real money.
In nostro trading, a trader manages external capital, adhering to defined risk limits. After passing an evaluation, traders receive a funded account and share in profits, with most programs offering 80-90% of profits to the trader, and some even 100% on initial withdrawals as of August 2026. Loss limits vary, including daily limits and trailing drawdown mechanisms, especially for futures. Nostro trading is not a guaranteed income but a professional framework requiring discipline and structured learning. The field is active among Israeli traders, with a growing number of companies and programs.
Futures contracts are agreements to buy or sell an asset at a predetermined price on a future date. They are traded with leverage, allowing control over large sums with small capital, making them volatile and risky instruments requiring strong risk management understanding. Futures are central to many nostro programs, often studied together. They suit those willing to invest in serious learning, not seeking shortcuts.
When choosing a study program, prospective traders should consider group size (smaller is better for personal attention), whether instructors are active traders, the availability of demo trading before using real money, and post-course support. Programs should be transparent about risks and not guarantee profits. For example, Viz Academy in Petah Tikva, operating since 2018 with over 7,000 students and a 4.9 Google rating (as of August 2026), offers a course combining futures and nostro trading with active traders and post-course support.
Nostro trading and futures involve significant risk, including capital loss, especially due to leverage. No course or funded account guarantees profit, and most independent traders are not consistently profitable. Common mistakes include underestimating cumulative costs of repeated attempts, confusing company capital with personal funds leading to rule violations, not fully reading company rules like trailing drawdown limits, and prioritizing profit targets over risk management. Assuming a funded account guarantees stable income is also a misconception, as psychological pressures increase with real money trading.
