Risk Management for Retail Trader

[wdbaker]

Hypothetical situation:
A friend of mine opens an acct and puts $25,000 in it, tells me I can trade his account if I deposit some money to cover any loss, say $5000, and if we can guarantee his $25,000 is protected(i.e. if the account drops to $25,000 all is liquidated or some such intervention. similar to a Prop firm but retail)

Is there a way to do this or a brokerage that can handle this.

This may not be so hypothetical if I can find a way to do it.

Thanks
wdbaker

 

[metooxx]

Originally posted by wdbaker
Hypothetical situation:
A friend of mine opens an acct and puts $25,000 in it, tells me I can trade his account if I deposit some money to cover any loss, say $5000, and if we can guarantee his $25,000 is protected(i.e. if the account drops to $25,000 all is liquidated or some such intervention. similar to a Prop firm but retail)

Is there a way to do this or a brokerage that can handle this.

This may not be so hypothetical if I can find a way to do it.

Thanks
wdbaker

He is just going to have to trust you ...

 

[AllenZ]

Remember you are also going to have to trust him as you will be depositing money to an account you have no legal claim to access.

I have done this before, takes a lot of trust on both sides.

AllenZ