Question about getting a job in a Prop Shop Trading

[rmorse]

We offer customer accounts where each account is owned by a different entity or person with their own EIN# or SS#, all with SIPC protection. Accounts are not related in any fashion. You know I'm very familiar with Vtrader, because I was a member for 1 year in 2010.

If AAA LLC owns account 12345, and he gets a margin call in their PM account on Monday, they are expected to wire in funds on Tuesday. Keep in mind that PM calculations are only calculated by the OCC after end of day and reported back to the clearing members around 8pm to 9pm ET. Before that, many brokers only monitor their house rules, risk and day trading buying power.

 

[trilogic]

Biggest value in a prop firm is not leverage but ability to trade from their office (IE ecosystem), especially if you are a rookie it will put your career fast track to profitability ( assuming the said person has the required attributes to become a successful trader) and if you are a seasoned trader aggregate information/ knowledge. Prop firms that do not accept capital contribution do not have remote traders.

Thanks, but today why would anyone join prop if you have 25k to trade say options. Options and futures give plenty of leverage, IF you can turn that 25 into 75k and so on, you can have plenty of capital eventually.

If anyone is within moments of liquidation at IB or elsewhere and EVEN if the trade turns out to be profitable, that was a bad judgement regardless

 

[Maverick74]

We offer customer accounts where each account is owned by a different entity or person with their own EIN# or SS#, all with SIPC protection. Accounts are not related in any fashion. You know I'm very familiar with Vtrader, because I was a member for 1 year in 2010.

If AAA LLC owns account 12345, and he gets a margin call in their PM account on Monday, they are expected to wire in funds on Tuesday. Keep in mind that PM calculations are only calculated by the OCC after end of day and reported back to the clearing members around 8pm to 9pm ET. Before that, many brokers only monitor their house rules, risk and day trading buying power.

Bob, we are not talking about introducing brokers here. I think you somehow thought the question was should I join a prop firm or start a fund through an IB. I am trying to explain the difference between at that time was the choice a trader had between joining a JBO or staying retail in a PM account. Of course this choice is moot now that JBO's are pretty much done so we are simply driving down memory lane here. But the question was asked, why would someone with 25k or some modest amount of capital join a prop firm and I explained why. There were advantages at the time obviously or economically they would not have a reason to exist. The prop model is pretty much dead so I guess that's one less choice a trader has to make these days.

 

[Maverick74]

Thanks, but today why would anyone join prop if you have 25k to trade say options. Options and futures give plenty of leverage, IF you can turn that 25 into 75k and so on, you can have plenty of capital eventually.

If anyone is within moments of liquidation at IB or elsewhere and EVEN if the trade turns out to be profitable, that was a bad judgement regardless

There is a lot of math involved here and I could probably write an 800 page book on the subject and why your above statement is inaccurate but since this industry doesn't really exist anymore, I'll fore gore the literary exercise.

 

[trilogic]

There is a lot of math involved here and I could probably write an 800 page book on the subject and why your above statement is inaccurate but since this industry doesn't really exist anymore, I'll fore gore the literary exercise.

Agree, its over prop firms are useless

 

[Maverick74]

Agree, its over prop firms are useless

Well, it's over the prop firms where you contribute your own capital. Plenty of real prop firms still out there.

 

[endicottsteel]

Outside of buying power what does a prop shop offer anyone, with 25-50k in options you can get plenty of leverage to scale up eventually if your any good, what the prop firm value these days ?

custom margining has already been mentioned. This is true in futures and stocks as well as options mentioned. I would also lower round trip costs much lower than those available to a retail trader. Yes exchange memberships are available to buy and lease however these costs all add up if you were to undertake yourself.

Unfortunately the term 'prop' has been hijacked by many including education outfits wrapped up in other forms. GL.