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ur profits help minimize the catastrophic losses of a prop trader in a prop firm since it is a pool of all the prop traders money. note i said catastrophic loss, not just any loss. it has to be detrimental to firm.

use options to protect overnite. u can learn alot about options on internet. options are a tool everyone should use when trading, at least to protect/hedge. think of options as insurance. buy calls-right to buy long stock short calls-obligation to sell stock buy puts-right to sell stock...

NEVER MIND, I just found out the answer to my question. makes sense to share in losses. not a prob, really makes me feel a little nauseas tho. rethinkin about trading with prop firm now, but margin sounds so tempting.

Options just rule. So much leverage with so little down payment, and you can also have money coming in for just puttin up some collateral. So many strategies to use. As long as u understand each type of option (call and put) and understand each strategy in which way you want the stock or...

mr bright do all prop firms require that their prop traders share in one prop trader's catastropic loss? does BT partake in this type of practice? i would understand why for the prop firm's sake, but again, i wouldn't want to help out another prop trader cause they didn't heed to risk mgmt or...

he and i have already been in touch. that would be cool tho.....lol!!! and trading those options would free up his capital for other prop traders who prefer to trade those equities which require tons of dough.

yep, sure sounds pretty good to me as to reason why they possibly charge a little more. sounds like BT attempts to do all backend stuff and them some so traders can focus on just trading. pretty cool!!!

hey mr bright at BT, if a prop trader has a catastrophic loss, do other prop traders have to use their initial deposits or portion of their accts to make up for loss? i see this with other prop firms where the initial deposit is used to make up for the loss. thanks. is this standard for all...

uh okay, if u say so. just making sure i know how prop shops work b4 i get involved, that's all. everyone is entitled to dumb questions so as to not make dumb mistakes. i would rather learn from others who have exp with prop shops than cost myself $ cause i didn't know. sorry for askin. shish.

lol thanks fader

thanks to everybody for their responses to my threads. i really do appreciate it as i understand prop firms better now. i knew about em, just not very familiar with em. again, i appreciate it.

echo does

don't worry about calendar spread trading threads. i am doing that for right now while waiting to decide on prop firm. while i am at prop firm, i will trade equities while hedgin with options. FORGET THE CALENDAR SPREAD STUFF!!!! LOL!!!

i understand BP as i am series 7 licensed. i just wondered since u r using prop firm's money, they get to keep profits on the borrowed portion.= and that was possibly another way they made money. i understand in a retail brokerage acct, if i use margin, i get to keep profits on margin money...

sorry, i will trade equities with their buying power since u cannot use options with buying power, only cash. options trading only allows u to use cash. i am talking about trading only equities here. sorry for confusion.

well let me rephrase. i put up my $5k. lets say i use some buying power that equals to another $10k making total trade $15k. when i make a profit, i get to keep profit on my $5k and they make and keep profit on their $10k used in buying power. sorry if i worded incorrectly. does this make...

just thinking things out. so if u put up $5k in ur prop firm acct for example, trade 10:1 or 20:1 leverage, u just get to keep profits on what u make on ur $5k only, correct? prop firm gets to keep profits from other funds they provide, correct? seems fair to me. i'm not that greedy to want the...

not necessarily. i do have series 7 tho. mr bright from bright trading has helped me now. he is awesome and told me how the business works. i will need more capital as i knew. just trying to gain that buying power somehow. thanks for your help, mr bright. YOU THE MAN!!!!

um, all u have to do is have a long leg while u repeat trade the short leg over and over, sell to open then buy to close, wait for stock to move in direction of long leg, then short another leg. or when stock goes in direction of long leg, get out of short leg quickly and let profit ride in...

except for futures, yes, u can trade them, which i think is odd, but what do i know.