Proprietary Trading Firms

JMowery1987 · May 16, 2006

Quote from Longhorns:

Real simple...you keep everything you make, minus the commissions for the trade (which the firm keeps).

What he just said

optionzztrader · May 16, 2006

i understand BP as i am series 7 licensed. i just wondered since u r using prop firm's money, they get to keep profits on the borrowed portion.= and that was possibly another way they made money.

i understand in a retail brokerage acct, if i use margin, i get to keep profits on margin money used. just didn't know about how prop firms margins worked. so its basically same as retail brokerage loaning u money. that's pretty cool.

i don't mind trading equities at a prop firm. easier than trading options. i will just use options to hedge when trade goes awry. i won't use options solely to trade.

thanks for ur help and sorry for confusin ya. lol

knocks420 · May 16, 2006

Wait I'm lost, your daytrading the legs of a calendar spread? Is this because of the limited capital or do you actually have a system for going long/short?? If so, why go into a calendar-just as a partial hedge?

optionzztrader · May 16, 2006

Quote from knocks420:

Wait I'm lost, your daytrading the legs of a calendar spread? Is this because of the limited capital or do you actually have a system for going long/short?? If so, why go into a calendar-just as a partial hedge?

don't worry about calendar spread trading threads. i am doing that for right now while waiting to decide on prop firm. while i am at prop firm, i will trade equities while hedgin with options.

FORGET THE CALENDAR SPREAD STUFF!!!! LOL!!!

RICKTHESTICK · May 16, 2006

I don t think you will find too many prop place that will let you hedge with options since most shop are focus on intraday positions.

optionzztrader · May 16, 2006

Quote from RICKTHESTICK:

I don t think you will find too many prop place that will let you hedge with options since most shop are focus on intraday positions.

echo does

optionzztrader · May 16, 2006

thanks to everybody for their responses to my threads. i really do appreciate it as i understand prop firms better now. i knew about em, just not very familiar with em.

again, i appreciate it.

FaderTrader · May 16, 2006

Quote from optionzztrader:

just thinking things out. so if u put up $5k in ur prop firm acct for example, trade 10:1 or 20:1 leverage, u just get to keep profits on what u make on ur $5k only, correct? prop firm gets to keep profits from other funds they provide, correct? seems fair to me. i'm not that greedy to want the profits off money they extended me. but if they want to give it to me, i ain't gonna complain.

sorry for naive question, just want to make sure.

Jesus Christ.

Prop firms are leverage vehicles. Nothing more. They make money from commissions generated from your active market participation. No need to overthink it.

optionzztrader · May 16, 2006

Quote from FaderTrader:

Jesus Christ.

Prop firms are leverage vehicles. Nothing more. They make money from commissions generated from your active market participation. No need to overthink it.

lol thanks fader

zdreg · May 17, 2006

Quote from optionzztrader:

i understand BP as i am series 7 licensed. i just wondered since u r using prop firm's money, they get to keep profits on the borrowed portion.= and that was possibly another way they made money.

i understand in a retail brokerage acct, if i use margin, i get to keep profits on margin money used. just didn't know about how prop firms margins worked. so its basically same as retail brokerage loaning u money. that's pretty cool.

i don't mind trading equities at a prop firm. easier than trading options. i will just use options to hedge when trade goes awry. i won't use options solely to trade.

thanks for ur help and sorry for confusin ya. lol

if the prop shops took the profiit made on the borrowed money why would you borrow the money?
you didn't confuse anybody. you are the only one who is confused.
people on this thread have been for some unknown reason extremely gentle with you. you obviously need to learn alot more about about hedging. otherwise your AWRY trades are very like to get whipsawed into bigger losses.