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volatility is based on volume (liquidity) more so then market cap. A $2B firm w/ only 5M of it's float trading every day would be more volatile then a 100M firm w/ 1/2 it's float getting traded.

Options ARE A ZERO SUM GAME (ignoring commissions). Example: I write you an option, a 20 put on INTC. You have 100 shares of INTC, that you bought at 22, you wanted the protective put. You paid me a $1.00 premium for it.. at expiration, INTC is at 30. So you have $700 gain total...

If you read my original post, I never said prop firms should be dealt away with, I said they should face more regulation, especially dealing w/ disclosure and honesty, and possibly be renamed (since it's not truely proprietary trading).

If AMD goes out of business (which is highly likely once ch 11 is filed), then INTC will be the only one making CPUs for computers, which means they have a monopoly. They will be sued, and they will be broken up if AMD goes out of business.

Options are automatically exercised if they are 5 cents or more in the money on expiration day. It's all in the OCC's bylaws. If you don't know the rules, and you trade options, any loss is YOUR problem. Anytime someone tells me they want to trade options, first thing I ask them is...

What if.. you have 2 accounts - 1 at a standard retail broker that charges a flat rate (ameritrade, $9.99 / trade) - 1 at a broker that gives you a "add liquidity" rebate You put an order on the books to add liquidity at the 2nd broker... for say 100,000 shares You buy those 100,000...

There's one thing you're forgetting. INTC cannot push AMD into bankrupt. If they do, then INTC's going to have an anti-trust lawsuit on their asses because they're going to be the only major CPU maker left.

You really can't do stop on options. Due to the huge spreads, it pretty much requires you to be there to put in the orders, unless you don't mind getting ripped off by paying bid or selling at ask with a spread of $1+

They do it to make sure nobody can try to make a market except market makers. Think about it. On a lot of options, the spreads are $1 wide or more. If there was no cancel/modify fee, someone else could easily try to make a market in those options.

I'm going to bet it's some crappy company in some crappy country running it. (which means it'll be practically impossible for you to pursue legal action) You'd have to be nuts to run a fraud site from inside the US.

unlike most firms though, swift doesn't make you put up "risk capital"

yeah rob, that's the issue I'm referring to (although I saw an article about it on another website)

If you short against the box, the only thing that'll happen is you have to count capital gains as if you sold the stock regularly.. If you fail to do that, then you could get nailed for trying to evade taxes that way. One reason I could see for shorting against the box other than for tax...

If it was the government reading your email, they'd cover their tracks and mark the messages unread.. it has to be an amateur idiot who reads someone's mail and doesn't mark it unread.

The payout isn't an issue here, because that's something negotiated between the firm and the client. The only major issue I see is the deception involved. The people who sign up w/ the prop firms have to know what they're getting into! that's all! Btw Don, what do you think will happen to...

Here's an idea: Make it so if you have long term positions, you can "lock" those positions. You have to enter in the RSA passcode on a different screen to "unlock" the positions, so even if someone hacks into your machine, and gets into TWS (which i'm assuming you'll need the RSA passcode...

As many of you know, the SEC is considering new rules to make what a lot of the current proprietary trading companies are doing illegal (taking deposits, paying out almost 100%, etc..), since they feel that it is really just a retail account disguised as proprietary trading. I agree with...

What I been seeing is that 95% of prop firms are really just scams, where their "job" opportunities are just a sales pitch to get you to start paying commission. If you're putting down a deposit, I don't see any reason why you should even have to pay .1% of your profits to the firm. Sure...