Prop for an FX trader
- Thread starter Georgii
- Start date
On Mirus Futures, 6E is trading at 1.4075 while I type this message. 6e is EUR/USD. I click buy on the DOM at 1.4075, this is a limit order, it gets filled in 2 secs, I can then choose to get out say at target of 1.4095 limit, and set a stop at 1.4050. My stop or target will get hit, I did not pay a spread, also I can see real volume plus the number of contracts that are actually being traded in real time plus the number of contracts for example real not fake orders that will be removed if price goes there both 5 levels above and below current price. Orders are also filled in a 1st come basis, for example, you place an order before someone else, it gets filled before that other person or company even if its Goldman.
Now I do have to pay a fee for this trade but it is less than if I want to buy the EUR/USD for example using IB. The difference is the bid vs the ask price, you can not get the exact price since you lose 2 - 3 pips when you take the trade, that is how the fx brokers make their money since they don't charge you a commission to place the trade. This is how they make their money. Trying to scalp on fx is usually a fools game, it only pays to swing trade it for example there are no currency futures for the EUR/JPY, so my last trade I took 40 pips of profit since it was a swing trade trade, no way was I going tor 5 to 10 pips.
Also, anyone who is being critical of what I am saying, try it for yourself for free. You can download NinjaTrader with Zenfire for free. Lets say you are doing a trade in the EUR/USD long, do the same trade in NinjaTrader in sim with the 6E future, and lets assume its a winning trade, see how much money you made in NinjaTrader vs your Forex Broker. I have done it in both, and I always make less money with the Forex account.
He was asking about Forex prop firms, not Future prop firms.
http://searchwarp.com/swa79927.htm
Leverage for Forex can be 200 to 1 or even higher. For futures overnight traders, you need $ 7,500 for a single contract. However, yes, you can find a few firms that allow intra-day trading for $ 1,000 for a single contract.
Now my understanding if you are really good and have a ton of money like like one of the brothers / owners at Bright Prop firm, you can buy a membership and then get really cheap commissions to trade futures. I assume a Future Prop firm probably has a member or offers you better commissions or other reasons like maybe better software to trade. I think if you want to trade 50 to 100 contracts, you maybe looking to trade at a Futures Prop firm.
By the way, there is way to get around some of these rules, since some markets open different times, so you could close your position, and then reopen it later in the day when the market reopens. I don't think many traders know this trick, but it does allow me to trade after hours with less margin.
http://searchwarp.com/swa79927.htm
Leverage for Forex can be 200 to 1 or even higher. For futures overnight traders, you need $ 7,500 for a single contract. However, yes, you can find a few firms that allow intra-day trading for $ 1,000 for a single contract.
Now my understanding if you are really good and have a ton of money like like one of the brothers / owners at Bright Prop firm, you can buy a membership and then get really cheap commissions to trade futures. I assume a Future Prop firm probably has a member or offers you better commissions or other reasons like maybe better software to trade. I think if you want to trade 50 to 100 contracts, you maybe looking to trade at a Futures Prop firm.
By the way, there is way to get around some of these rules, since some markets open different times, so you could close your position, and then reopen it later in the day when the market reopens. I don't think many traders know this trick, but it does allow me to trade after hours with less margin.
You stated that leverage is so high that there is no need for prop forex, not so.
Leverage for futures can also be as high as 200 to 1 and still there are prop futures firms.
$300 margin for Emini equates to 200:1 also
http://globalfutures.com/accounts/margins.asp
Plenty of brokers offering $500 for emini intraday
http://www.tradewithvelocity.com/commissions/index.aspx
http://ampfutures.com/margins_ninjazen.html
http://mirusfutures.com/futures_trading_resources/margins/day_trading
The reason you don't get 200:1 overnight with futures is because futures trade on an exchange and are regulated unlike forex
Here you can trade forex prop
www.marexfx.com
Now the below article will show you how in fact currency futures which is what I am talking about have less leverage than Forex.
http://www.futuresmag.com/Issues/2010/March-2010/Pages/Leverage-limits-vex-forex.aspx
http://www.futuresmag.com/Issues/2010/March-2010/Pages/Leverage-limits-vex-forex.aspx
"ES moves up 1 tick, you make $25" WRONG , you make $12.5
Now you start talking risk/reward, it's about leverage, $300 for an ES contract worth around $60000 is 200:1 leverage.
In case you need $5000, you wire back $4700.
Here you can trade forex prop at their Marex trading division
www.marexfx.com
I usually post stream of thought, then reread it, and correct it. You replied too quickly, I fixed the post, if you read it, then I am right based on the article.
Anyway, I saw a only a couple Future prop firms, I can see some advantages to trading at them, but again I see the need for leverage is why there are many more stock prop firms since with a $ 5,000 account, you could make more than working at a job if you have a good edge.
"Now the below article will show you how in fact currency futures which is what I am talking about have less leverage than Forex.
http://www.futuresmag.com/Issues/2010/March-2010/Pages/Leverage-limits-vex-forex.aspx
"
Anyway, I saw a only a couple Future prop firms, I can see some advantages to trading at them, but again I see the need for leverage is why there are many more stock prop firms since with a $ 5,000 account, you could make more than working at a job if you have a good edge.
"Now the below article will show you how in fact currency futures which is what I am talking about have less leverage than Forex.
http://www.futuresmag.com/Issues/2010/March-2010/Pages/Leverage-limits-vex-forex.aspx
"