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Maverick
- Thread starter Warrior4g
- Start date
Quote from Warrior4g:
are you saying that having a series 7 makes no differerence when trading with a prop or LLC?
the question is whether the LLC or prop is registered with the exchange in order to give better than 4-1 leverage?
That is correct. The series 7 is a moot point. If you are a registered member of an exchange as is the firm you work for, the member firm can extend leverage to it's members that are also registered. If the exchange you are a member of is the CBOE, you are not required to have a series 7. The series 7 has nothing to do with leverage. Absolutely nothing.
Quote from Warrior4g:
if a firm is registered but their customer is not,how does a customer become a member?
if you belong to an LLC that is registered,does the trader have to be registered?
Yes, a trader has to be an exchange member. There is a lot of gray area though in how this works and ways guys get around it. It's very easy to become an exchange member btw.
Really, Im a member at the CBOT. Is there a way for me to prop equities without taking the series 7?
yes.....the CBOE would give you approval on your application through the B/D that you are looking to trade with with a membership through another exchange? Why?
Because you are not retail chump whom is going to take this leverage and blow out within a few weeks........well you can but you are than treated as a institutional/ accredited traders and can not than claim" I did not understand what I was getting into with this structure".
Because you are not retail chump whom is going to take this leverage and blow out within a few weeks........well you can but you are than treated as a institutional/ accredited traders and can not than claim" I did not understand what I was getting into with this structure".