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OK. I will answer myself after finding this on the web: Microsoft Word - FPB 09-01 - Clearing Fees for Member Firm Accounts CME - CBOT - NYMEX - COMEX - June 2009.doc (cmegroup.com) "The trading activity of individual customers/traders conducted in the name of the firm is not eligible for...

I am considering a business idea of an arcade-type business for trading futures on CME. I am thinking of setting up an LLC that would become an exchange member of each CME division. Then getting a "prime broker" FCM and negotiating heavy discount on commission, promising huge volume. Then...

@Ironbeam @Robert Morse Does every FCM require a personal guarantee of an LLC's member when opening the account for this type of entity? Is there any difference in this regard when the entity is of a similar type but registered overseas? Will the LLC benefit from the same reduced CME rates...

Perhaps this is the answer to "how many contracts to trade at most?". If they have done all the job for you and come up with a number that basically says how much you can lose in a day on 1 contract then this could be a good base to the max position size in your account - taking a multiple of...

@Ironbeam As a side question - can you, or any other FCM demand a margin that is higher than what the exchange says it is? When would that be the case?

How do exchanges like CME calculate the margin for a particular futures contract? Do you use that value, or a multiple of it, as a guide as to what your maximum position size should be? For instance, if the margin is $2,000, you trade up to 1 contract per $4,000 in your account ($2,000 for...

How would that work with only one leg? Will the formula be SPREAD(EU6,CUR)?

It could be ticks. Just some measure of how much I stand to lose if the position was liquidated. Now I have to do these calculations mentally which is not most efficient and quickest way of doing this.

Can anyone please explain to me why do two major trading front-end providers, i.e. CQG and Trading Technologies, not have a feature in their platforms that shows the theoretical PnL on the price ladder if the position was liquidated at a particular price? It is such a simple but so useful...

Is anyone aware of a futures trading platform that would automatically place a stop-loss (stop market order) and then, also automatically, reduce the quantity of this stop market order to keep it in line with the current position size? Example: 1. the account is flat 2. a trader places a buy...

I ran a few simulations and indeed, it does not make sense - increasing drawdowns, not increasing returns. However, I will implement one idea: paying out the profit, if the account balance is above starting line, after hitting two winners in a row - this allows me to stay extremely focused, take...

I lose the last winner's profit (say 3R) and then lose 1R, 1R, 1R, etc. Why is it funny? I am not trading like that yet. I am just giving it a thought.

I do not know what to think myself of this idea. It is just as rational as some daytraders' idea of "A setups" where they risk 2 or 3 "units"/"clips" or 50% of their daily loss limit and "B setups" where they risk only 1 unit or 10% of the daily loss limit. Personally, I have no idea what will...

I am considering a trading system in which you play to get two winners in a row, where the second winner is risking the profits of the first one. After that, or after a loss, the risk reverts to the standard risk. It is modified reverse Martingale position sizing. For example - standard risk is...

I am glad I inspired some discussion here. 2/20% model has only been introduced not so long ago and it seems it was not a good idea. Besides, now the average is 1.6/16.4% (figure I memorised from an article on the topic, can't remember where I read it though). Moreover, hedge funds like...

Hi Chuck, I am writing in response to your message in the thread I started about a prop firm vs. hedge fund. Can you point me in the right direction, as you put it, to establish a fund, please? Do you know of any providers that would help me go through this process so that the fund could be...

What legal structure do you suggest then? Set up a company and use instruments like shares/bonds to raise capital? Or set up a fund and bear higher operating costs and then look for investors in the fund? I was thinking about an ETF but there would be an issue with daily redemptions/purchases...

I am coming to a conclusion that fixed income debt (corporate bonds) would be the easiest way to raise capital. Investors, especially in the country where I would carry out the initial raising activity, like to know what they are guaranteed to get. That would be a huge risk for me and my company...

I do not care too much about listing but it is just a standard way to raise capital in some European countries. There are a few exchanges where it is standard to raise up to about $1-2m (but not much more) with listing costs of maybe $30-50k. I am not talking NYSE here. For some reason it is...

This would be a publicly-listed company on an exchange that requires only quarterly financial statements - and not detailed down to daily equity swings or trades executed. Just regular financial statement. When I see a description of real-life costs and admin required to run a hedge fund I grow...