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Proprietary futures trading
- Thread starter sabena
- Start date
It seems the business model of stock prop firms is based on generating revenue from commissions. You don't need to show so much ability or experience because they can keep you on a tight leash so you can't lose much money (and I understand correctly your losses come out of your "deposit").
Their most coveted traders are the ones who do hundreds of trades a day (generating huge commissions) plus make a bit extra to give them a living and keep them there.
In contrast futures prop firms revenue model is based on betterment of capital. They want traders who will generate excellent risk-adjusted returns, and will pay them a management fee (typically 1%) and incentive fee (15-30%) to do this.
Typically, you will need a 2-3 year track record with very good returns on a decent size account before they will look at you.
So, to answer your question, I think there are not too many futures prop firms because it is a totally different ballgame to stock prop trading.
Whoops, I didn't answer your question - a big one is Commodities Corporation, now a division of Goldman Sachs. You can read about them in the Market Wizards or Pit Bull. I know of others, but don't want to post them on this board. Most have relations with futures brokers. Generally, if you are a great trader they will find you.
Their most coveted traders are the ones who do hundreds of trades a day (generating huge commissions) plus make a bit extra to give them a living and keep them there.
In contrast futures prop firms revenue model is based on betterment of capital. They want traders who will generate excellent risk-adjusted returns, and will pay them a management fee (typically 1%) and incentive fee (15-30%) to do this.
Typically, you will need a 2-3 year track record with very good returns on a decent size account before they will look at you.
So, to answer your question, I think there are not too many futures prop firms because it is a totally different ballgame to stock prop trading.
Whoops, I didn't answer your question - a big one is Commodities Corporation, now a division of Goldman Sachs. You can read about them in the Market Wizards or Pit Bull. I know of others, but don't want to post them on this board. Most have relations with futures brokers. Generally, if you are a great trader they will find you.
sussquehanna
timberhill
FCT (first continental trading)
CRT
many others
ask people who work on a trading floor (esp NYC chicago) who they are
timberhill
FCT (first continental trading)
CRT
many others
ask people who work on a trading floor (esp NYC chicago) who they are
my info is a bit outdated....best to get a contact on the floor....keep networking....then start on the trail of those firms that way..
some prop firms are front loaded (highersalary, discretionary performance bonus)- you could probably lump in your CRT's, spear leeds, etc here.
others are salary (taken as a draw against bonus), plus annual or semi-annual bonus payouts based on anywhere between 25-75% of your profits- this is contractual and formulaic. thse would be smaller firms or backers that specialize in sponsoring traders.
some prop firms are front loaded (highersalary, discretionary performance bonus)- you could probably lump in your CRT's, spear leeds, etc here.
others are salary (taken as a draw against bonus), plus annual or semi-annual bonus payouts based on anywhere between 25-75% of your profits- this is contractual and formulaic. thse would be smaller firms or backers that specialize in sponsoring traders.