Comission

[coolcash2004]

What is the standard amount a trader will earn for making substantial profits on trades? IE: Making a company 30% in one year. Do they get around 1 or 2 percent of that profit?


Thanks.

 

[cszulc]

If it is a hedge fund-type agreement of management, normally 2% is taken from principal and 20% from the profits.

Structure it however you want, but only 1-2% of the profit is a horrible deal for the trader.

 

[coolcash2004]

Thanks!

That sounds like a good deal.

How much would a hedge fund trader manage in a year on average?

 

[crgarcia]

Quote from coolcash2004:

What is the standard amount a trader will earn for making substantial profits on trades? IE: Making a company 30% in one year. Do they get around 1 or 2 percent of that profit?


Thanks.

Many hedge funds pay their traders 10% of the profits.

Be aware that many good hedge funds charge their customers more than the usual 2/20% fees.