Futures Proprietary Trading

Interesting point.

Thank you.
Xela said:
For what it's worth (if anything), and just as a sort of "general note" rather than a specific answer to your question, I think it's more helpful and makes more sense to think of it and define it in terms of "maximum position-sizing permitted" than "funds allocated" (even if a specific amount of funds is allocated).
More...
 
Hi aetrade,

if you live in Europe or if you are willing to move there, you can still find many futures prop trading companies in UK/ London and also a few in other countries, for example:
- Tower Trading Group, London, I think they also have offices in Essex, Dublin and Gibraltar. They also offer remote trading.
- Arjun Capital, London
- Hamilton Court Capital, London
- Arfima Trading, Spain/ Madrid
.
.
.

Greetings,
CALLumbus
 
garachen said:
Names: Jump, DRW, tower, etc
Payout: 5% to 25%
Fees: on average. All in about 25c total per side. Including exchange fees. Varies by product.
No risk capital.
Really good resume plus actual skills
No independence
No IP
No remote
6-12 month non compete

Hard to get an entry level job. Very competitive.
More...
Garachen...how have you been? Do you still have a trading staff? Do you still use DOM tactics or have things changed in the markets too much?
 
aetrade said:
Could you qualify what you mean by "no risk capital"?

When you say "No IP" does that mean I keep the IP I bring, but cannot keep any new IP I develop while there. Could you please qualify.

What's the typical amount of starting capital allocated to these "hired traders"?

Thanks.
More...
As Xela says. Funds allocated has no meaning. There are no funds. Just size and risk.

Generally, you wouldn't keep any IP. Maybe with the exception of something you worked on before and never touched while employed and had no expectation that you would be bringing it with you. But if you trade it there, they probably will own it.

You are typically not allowed to contribute capital. If you are lucky they might eventually allow you to contribute $250k to get the pass through tax treatment.

There are other firms out there that will take your money, give a higher payout and charge higher commissions. They have almost no capital, tech or relationships. You'd not be expected to succeed.
 
CALLumbus said:
Hi aetrade,

if you live in Europe or if you are willing to move there, you can still find many futures prop trading companies in UK/ London and also a few in other countries, for example:
- Tower Trading Group, London, I think they also have offices in Essex, Dublin and Gibraltar. They also offer remote trading.
- Arjun Capital, London
- Hamilton Court Capital, London
- Arfima Trading, Spain/ Madrid
.
.
.

Greetings,
CALLumbus
More...
Thanks CALLumbus.

How do the profit sharing deals works. Let's say a UK or EU firm asks you to put up $50,000 in exchange for a 60/40 profit/loss split.

How does this work in practice?

How much capital are you provided in addition to your 50,000 deposit? Or is there no additional capital provided, one being merely provided increased trading limits?

How are profit and losses calculated and split?

How does the firm protect itself from losses?

How does the trader protect his/her $50K deposit?

Any tips, warnings, and suggestions for these futures prop deals?
 
garachen said:
Names: Jump, DRW, tower, etc
Payout: 5% to 25%
Fees: on average. All in about 25c total per side. Including exchange fees. Varies by product.
No risk capital.
Really good resume plus actual skills
No independence
No IP
No remote
6-12 month non compete

Hard to get an entry level job. Very competitive.
More...
Never mind.
 
newwurldmn said:
Because in the right seat you can make 10-100x what you would make just trading your own money.
More...
Could you not also lose your trading stake 10-100x faster than you would by using the prop's firm capital or increased trading limits?
 
You must log in or register to reply here.
Back
Top