Newbie Q: Retail firm vs Pro firm vs Prop firm

W

WmWaster

Hi.
I am a foreigner from HK.
Maybe it is a stupid question.

I have never heard about retail/pro/prop firms, and also similar terms like "prop trading", "retail account"... Very confused! :confused:

What are they?
What're the difference?
Is "prop" short form? If so, what's its full form?

Thanks!
 
Quote from Wildcat _Trader:

i wanna say that a prop firm allows you to trade their capital and they manage your risk, a lot ask for capital contribution
More...

So it seems to me it is like a "bank" which will lend you money and trade.

How do the firm and the person share profits/losses?

Who can invest/work in a prop firm?
 
prop shops usually manage your risk by raising comssion fees and lowering margins for overnight trading. If you blow your account out they will leverage your account. but the loss falls on them. If you want to continue trading with them, they will ask you to put up more money. Some shops ask for more initial contribution for overnight trading.
 
Quote from Wildcat _Trader:

prop shops usually manage your risk by raising comssion fees and lowering margins for overnight trading. If you blow your account out they will leverage your account. but the loss falls on them. If you want to continue trading with them, they will ask you to put up more money. Some shops ask for more initial contribution for overnight trading.
More...

Do you know any prop firms' websites?

PS: It seems the www.vcapfutures.com/cts is not a prop firm as far as my knowledge goes (but could be wrong). I can't see if it has offers to give people money to trade nor bear risks when investor loses.
 
Do you know any prop firms' websites?

PS: It seems the www.vcapfutures.com/cts is not a prop firm as far as my knowledge goes (but could be wrong). I can't see if it has offers to give people money to trade nor bear risks when investor loses.

This is a firm that lets you trade on a margin, u don't even have to have your 7 i know people who trade with them, you can trade remotely or ask them if they have room in their offices @. They have pretty good margins from what many of my trader friends have told me. I also know that if you have a group of Traders they have better rates on the initial contribution. They are based out of chicago, and have offices @ the Cboe and CME. You should email this guy. aaikens@chicagotradingservices.com
 
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