Prop Firm that backs trader to trade CFTC and SEC (options too)

nitro · Jan 17, 2012

Does anyone know of a prop firm that backs traders to trade a mid frequency strategy that trades both equities and futures (and options on both) ?

Thanks.

Maverick74 · Jan 17, 2012

Quote from nitro:

Does anyone know of a prop firm that backs traders to trade a mid frequency strategy that trades both equities and futures (and options on both) ?

Thanks.

Nitro, they are not called CFTC options, they are called options on futures. LOL. There are plenty of firms that trade options on both equities and futures. I don't know, maybe 40 or 50? Getting backed is going to be nearly impossible.

bone · Jan 17, 2012

Quote from Maverick74:

Nitro, they are not called CFTC options, they are called options on futures. LOL. There are plenty of firms that trade options on both equities and futures. I don't know, maybe 40 or 50? Getting backed is going to be nearly impossible.

Well, I would assume that the term "mid-frequency" implies that he's asking about tying up alot of capital holding a portfolio for some period of days, which would not fly unless he is mostly hedged with plenty of margin offsets in order to minimize capitalization requirements. Plenty of firms will let you make markets or trade very short term hedged positions - but of course, there is NO meat left on those bones.

nitro · Jan 25, 2012

Thanks for the replies.

Can you guys name say five firms that, regardless of how remotely the possibility of backing, have the capacity to trade both equities and futures and options on both, and will compute risk by cross margining?

Maverick74 · Jan 25, 2012

Quote from nitro:

Thanks for the replies.

Can you guys name say five firms that, regardless of how remotely the possibility of backing, have the capacity to trade both equities and futures and options on both, and will compute risk by cross margining?

Just curious, but if you are getting full backing, what difference would it make if you get cross margining? If a firm fulls back you, they would have the resources to commit whatever capital it takes to make your strategy work. The cross margining issue is more for an individual using their own money to get the best possible margin relief so they can put as much of their capital to work as efficiently as possible.

nitro · Jan 25, 2012

Quote from Maverick74:

Just curious, but if you are getting full backing, what difference would it make if you get cross margining? If a firm fulls back you, they would have the resources to commit whatever capital it takes to make your strategy work. The cross margining issue is more for an individual using their own money to get the best possible margin relief so they can put as much of their capital to work as efficiently as possible.

Right. But if they are not computing risk this way (cross margin), I run out of capital faster. I guess that is what I mean.

bone · Jan 25, 2012

Quote from nitro:

Right. But if they are not computing risk this way (cross margin), I run out of capital faster. I guess that is what I mean.

Why don't you prove it out with smallish size using your own account, and then go shop it around ? Otherwise, you are raising more questions than answers and you will have long odds getting anyone to even interview you. That way, you can have live performance metrics and capitalization requirements. Find out if IB will cross-margin futures and options against cash instruments.

What you are looking for is an omnibus account. And those firms are typically very big and very professional - I know a few. Peak 6, Ronin, Jump, and DRW come to mind. I have personally worked with Ronin and Jump. You had better get your shit wired tight before you pitch them - you'll only get one bite at that apple.