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Seeking a Prop Firm
- Thread starter dave_s
- Start date
if you still want leverage on 7 fig, divide your capital among around 10 firms.
A bit of hard work during the execution, but depending on how you trade ( I assume not scalping on options? ), you can do it without needed additional "human execution power".
A bit of hard work during the execution, but depending on how you trade ( I assume not scalping on options? ), you can do it without needed additional "human execution power".
With the demise of portfolio margin due to increased requirements of clearing firms, I am interested in finding a Prop Firm with equivalent allowed leverage for swing trades (15 to 90 days). I almost exclusively trade SPX options.
Any ideas?
As someone who trades through both a prop firm and a portfolio margin account, mainly SPX options, here are the issues you will face.
In a prop firm, your SPX options (other than weeklies) will be routed through a broker on the floor. In a customer account, the orders go directly in the book. This can make trading much more difficult in the prop firm. Our prop firm clears Goldman and the only thing that I need to be concerned about is total risk. Currently in the SPX I need enough capital to weather 15% up and 20% down. Futures are easy to hold in the prop account and are aggregated with total risk.
A Think or Swim customer PM account will actually allow more risk (they look at less of a move) then my Prop Account.
You will also need a 56 for the Prop account.
if you still want leverage on 7 fig, divide your capital among around 10 firms.
A bit of hard work during the execution, but depending on how you trade ( I assume not scalping on options? ), you can do it without needed additional "human execution power".
Moving it into multiple accounts doesn't help if they all use 25% and 50% down stress conditions.
Moving it into multiple accounts doesn't help if they all use 25% and 50% down stress conditions.
Are IB and Wedbush doing this as well now?
if you still want leverage on 7 fig, divide your capital among around 10 firms.
A bit of hard work during the execution, but depending on how you trade ( I assume not scalping on options? ), you can do it without needed additional "human execution power".
I agree. It's good to split your capital. Especially with prop firms since they are not SIPC Insured.
Are IB and Wedbush doing this as well now?
The problem with IB is their auto-liquidation algorithm that can be triggered by a wide quote at almost a moments notice for short SPX option positions.
I don't know anything about Wedbush. Do you deal directly with them or through an introducing broker?