Quote from brownsfan019:
In addition, why would I sign up for this? If I am right, I owe you 20% of the gains. If I am wrong I owe the full loss AND 20%?!?!? Where's the benefit to the customer?
Say someone puts 10,000 in a broker account, they can lose up
to 10,000 yes?...
If I put up my own capital, they still get the
10,000 PLUS any leverage. Any gains they make are 100%
because its 100% borrowed money. While paying me back 20%
either way may seem like a rip off, its actually pretty cheap in my
opinion.
I'd rather pay someone 20% on my losses than lose a
full 10,000 of my own money And as far as collecting on my
losses?... Credit Card companies dont seem to have a problem
with this..they'll chase your ass down and MAKE you pay. I would
have a similar "contract"
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Say I signed on with an experienced trader, and let them trade
with 100k of my own money for a year, and they made a
consistant 5% a month (60% annual), thats 60,000 a year, not
using a penny of their own money!, not to mention their own
personal trading account that they may have.