Questions about prop trading

B

BinaryAlgorithm

- What is the required annual profitability (relative to capital used) needed to be considered for prop trading?
- What leverage is typically offered?
- How does the risk management compare with portfolio margin guidelines at retail brokers?
- Do any prop firms support long term and/or non-directional hedged positions or are all trades short term/speculative focus?
 
1) The risk profile of your strategy is more important
2) It's not leverage like a traditional retail BD. $50k capital could easily get you $1M intraday BP. Overnight is different depending on firm risk tolerance and #1.
3) At the individual book level, you will have a daily stop and possibly other restrictions.
4) Most prop firms are primarily focused on intra-day.

Every firm is different.
 
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