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Since the net holding for the firm (master account) = 0, it should not consume any BP. It appears to consume the BP of an individual trader, but should have no effect on the BP of the firm, right?

Since the firm has 4 million BP, and if one trader longs 1 million value of GOOG, and another trader shorts 1 million of GOOG, the actual BP used is 0. Besides, you also can get cross margining benefit from the clearing firm. I understood how it works, but I don't know if there are any...

I used taxcut premium last year. I think I entered my 1256 contract with the software. I haven't started my tax report yet, and so have no idea on the new software. Which version of taxcut do you use?

What are the steps to set up a JBO?

Stock options and equities are taxed the same way. Unless you are MTM, I believe most retail traders have to list every single transaction.

I was exploring the possibility of operating a trading cafe with prop trading service. Revenue will come from food/drink service. We will also set up a sub-LLC under a major prop firm. I have some investors who will support my idea. One investor has the experience of running a cafe...

I bet harold is the owner of the branch.

Mark: Thank you. I will pass the info to the group.

I knew the title. Is it for traders or for investors? The title seems to target for traders, but not many strategies are introduced. I have introduced them the covered call, cash-secured put writing, spreads as well as this thread. Just want to find out a better way to bring them to the...

The rules and regulations of the financial systems are different. Most prop firms get the leverage from their clearing firms. In China, a BD is unable to get any leverage to trade Chinese stocks. That means, if I give you 1 millions of buying power to trade Chinese stocks, I have to put 1...

Not true. There are other prop firms in your city. The business model of the other prop firms is different. You have to put up the deposit and they provide you the leverage. You can get close to 100% of the profit, but you have to take the risk of losing all your deposit. In swiftrade...

Mark: Thanks for clarifying. I just read that you have a new book coming out. Recently my option trading strategies are getting attention in my investment/trading club, and they would like to learn trading options. They like me to introduce them some option books for beginners. Is...

Mark: I might be wrong. Is it true that most of the short vega is coming from the put side? I normally just trade the put spread if i expect IV going down.

Because he used IB as his broker. I had short straddle on ER2 680 on the same day, and IB issued margin call at the day the market was not opened. My account was locked, and i was unable to close my position at the next day when the market was opened. IB liquidated my position at the worst...

ICs are usually not a bet on IV imo.

Mark: It is great to see you around. It has been very quiet for a long time.

Sugar: The risk reward ratio is better, but the probability distribution function of the success changes. IOW the expectancy is almost the same (both are zero without slippage and commission cost).

1. Did you paper-trade? It is hard to get the price at the mid. 2. Adjustment is hard without large slippage when it is close to expiration. 3. With big movement, you should expect a larger slippage. 4. A plan of no adjustment is a better exit strategy in this case imo. But I don't...

7 billions of loss, not asset. I wonder if anyone has any idea the amount of assets they were controlling?

You meant infinity, right?