Starting a Hedge Fund - choosing systems
- Thread starter scottmotte
- Start date
A "Limited Liablility" member of our LLC is only responsible for the amount of money they put up....thus the term "Limited" liability. As long as no violations take place, BT would eat any additonal losses.
Always glad to help with the facts, there is so much in the way of "non-facts" presented here at times.
All the best,
Don
Thanks Don 
Wait a second. That is amazing. How can you do business that way? If every one puts in 5k and takes tremendous risk and lose a lot you'd be out of business... I am sure you would not let the loss go beyond 5k... For example if the loss goes past the initial deposit, wouldn't you interfere and close the position? If not, man I'm coming over to you!
That's what every other firm tells me...
firms should be careful as to how they use the words proprietary trading.
firms that require you to deposit $ are not prop trading firms. most require a deposit to cushion the firm against loss, and then extend leverage to the customer. these firms will rarely if ever allow the trader to continue trading the account once it approaches or enters debit balance.
firms that require you to deposit $ are not prop trading firms. most require a deposit to cushion the firm against loss, and then extend leverage to the customer. these firms will rarely if ever allow the trader to continue trading the account once it approaches or enters debit balance.
I suggest traders and operators of these trading groups use the proper terms to describe the proper structure. Prop Firms take all the risk and use their money. The semi Prop which I call "supplemented Capital Firm" lend leverage and make margins off commish and banking/lending fees.....not P/L.
I have been involved with Both and Each has its advantages based on the traders and partners involved.
I also set up a CPO this year and it ran $15K to set up and each manager we hire has a segregated account and we can market their strategy independent as Delaware has a special section for the Funds of Funds model.
I would do a CTA or CPO or if needed the Private Fund through a supplemented Capital Firm before doing the PPO and SEC registration for a Hedge Fund.
WT
I have been involved with Both and Each has its advantages based on the traders and partners involved.
I also set up a CPO this year and it ran $15K to set up and each manager we hire has a segregated account and we can market their strategy independent as Delaware has a special section for the Funds of Funds model.
I would do a CTA or CPO or if needed the Private Fund through a supplemented Capital Firm before doing the PPO and SEC registration for a Hedge Fund.
WT
What should a Retail spot Forex Trader do to get more $'s to trade out of curiosity...some of the Retail Firms offer 500:1 Leverage already...
But what if a Retail Spot Forex trader wants a bigger bankroll to use his 10:1 leverage or margin utilized against?
Is there a solution for him or are these models that you are explaining best with Equities only?
I know there are guests wanting to know the answer to this question as I am really not interested personally to trade OPM or go Prop or Supplemented.
Michael B.
But what if a Retail Spot Forex trader wants a bigger bankroll to use his 10:1 leverage or margin utilized against?
Is there a solution for him or are these models that you are explaining best with Equities only?
I know there are guests wanting to know the answer to this question as I am really not interested personally to trade OPM or go Prop or Supplemented.
Michael B.
yes, electric. ms. terhune can advise on forex funds:
http://www.capitalmanagementlaw.com/forex.htm
http://www.capitalmanagementlaw.com/Forex.pdf
in addition, there is a very private group that will fund you, if you show success and fit the parameters for forex. PM me if you want the details.
regards,
surf