Quote from Szeven:
I thought i was asking reasonable questions, but i have not received any answers. I told you my buying power and asked if you though my company was putting up 10m in cash. You responded will telling me that I dont use my buying power, its not real, and inferred i am some type of liar.
ANSWER:
I never inferred you were a liar...I am not saying that you don;t look at your screen and see the buying power....however...In most cases its just a #...nothing more nothing less and while you may use that #...they are hoping several others are NOT using their BP to make up for you ....do yo follow this?
After that, you asked me how i was getting more than 10:1 leverage with no deposit. Obviously i cant answer that question as I have no idea. Its a prop firm, its supposed to be no deposit and big BP. Thats what i give up a % of profits for.
ANSWER:
THIS IS ABSURD....LET ME EXPLAIN...IF WHAT YOU STATE IS CORRECT...YOU HAVE NO CAPITAL UP, NO MONEY DOWN....YOU HAVE NO LEVARAGE...HOW CAN YOU GET 10:1 ON ZERO? 0 X ANY NUMBER IS ZERO....HOW DO YOU FIGURE YOU GET 10:1 IF YOU HAVE NO MONEY AT RISK AS YOU SAY? DO YOU UNDESTAND THAT CONCEPT? IF I WERE TO PUT NO MONEY DOWN ON A HOUSE AND SOMEBODY ASKED ME HOW MUC LEVERAGE THEY GAVE ME FOR MY DOWN PAYMENT MY ANSWER WOULD BE ZERO...I PUT NOTHING DONW AND RECIEVED THE HOUSE.....YOU CAN;T STICK IN A 10:1 FIGURE IF YOU HAVE NO ONEY DOWW LIKE YOU SAY.
Then, you asked me what would happen if my prop firm folded owing me 20k. ?!?!?!??! of course that is a risk of prop trading? They would owe thousands of people money, but that is a risk im fully willing to take. I believe that my risk of not being paid is lower than a random LLC that you were attacking threads ago for offering .003 or less.
ANSWER:
YOUR CHANGING THE QUESTION...YOU SAID " I HAVE NO MOENY DOWN AND ABSOLUTELY NO RISK"...WE JUST ESTABLISHED ABOVE THAT YOU CANNOT HAVE 10:1 LEVERAGE IF YOU HAVE NO MONEY DOWN RIGHT? OK ...SO NOW YOU SAY YOU HAVE NO RISK AND I ASKED ABOUT YOUR TRADING PROFITS ON A MONTHLY BASIS...OBVIOUSLY YOU HAVE RISK NO???? IF THEY DON;T PAY YOUR OUT THOUSANDS RIGHT?
Finally, you seem to know a lot about penson, peter beck, clearing etc. So then wouldnt you know how prop firms get big BP? The best thing i can think of is borrowing money from penson/private equity, and using that to leverage traders. For instance, borrow 10m @ 6? 7? %, pay the 600k a year and then hope i return more than 600k a year in split profits? Doesnt seem like a good idea to me.
ANSWER:
GOOD FOR YOU !! YOUR FINALLY STARTINGTO GET IT...THEY DO A MULTITUDE OF THINGS...INCLDUING HAVING 3RD PARTY BANKERS OPEN AN LLC...DEPOSIT LARGE SUMS OF MONEY..CHARGE 10,15 AND IN ONE CASE I SAW 18%....THEN THEY COMBINE $$ FROM llc TRADERS FROM AROUND THE COUNTRY..AND LASTLY...THEY GO TO THE CLEARING FRIM AND SAY...CAN WE DO A JBO OR PORTFOLIO MARGINING....( btw,,,IF THE MAIN GUY GETS COLD FEET AND PULLS HIS MONEY,,,,OUCH...HE USUALLY GETS SET UP WITH A RISK MANAGEMENT PANEL AND HAS A DIRECT DIAL IN TO THE CLEARING FIRM IN WHICH HE CAN SUSPEND TRADING
I am still confused
ANSWER:
WHICH IS WHY IM ACTUALLY TRYING TO HELP....DON'T KILL THE MESSENGER AND HAVE AN OPEN MIND....LIKE HOW COME ALL THE FIRMS WITH THE HUGE BP ARE LLC'S AND NOT...OH...AMERITRADE OR SCHWAB??? OR MERRIL OR GOLDMAN... IF IT WAS RISK TOLERANT AND PROFITABLE DON'T YOU THINK THEY WOULD DO IT????
