What If You Lose A Fortune?

S

sub0

How much does the average US prop shop allow for leverage? If you put in $5k what will they allow you to use?

What if you lose a fortune? I hear prop shops like Swift trade don't come after you but what about prop shops like Bright Trading? Will they come after you for losses?

What if you lose $50,000? Anyone have any experience with this?
 
After trying to get it from you for about two months, by their manager, compliance officer etc.. they sell the debt to a collection agency for cents on dollars.

Then they call you three/five times each day till you pay the debt. They send in managers on managers to tell you how its going to affect you, and how they are going to come after you.

You just change your phone number, move to a new city/country, just change your name and don't stay in touch with any of your previous friends, parents etc. Also a plastic surgery would help too. (My friend did this... & he now lives in Mongolia or something where no one can find him.)
 
Quote from sub0:

How much does the average US prop shop allow for leverage? If you put in $5k what will they allow you to use?

What if you lose a fortune? I hear prop shops like Swift trade don't come after you but what about prop shops like Bright Trading? Will they come after you for losses?

What if you lose $50,000? Anyone have any experience with this?
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You will never trade any size with 5k. Just so you know.
 
At my firm, a risk manager will know if you are down significant to your cap and will make you close out the position before it turn into a 50K loss.

Quote from sub0:

How much does the average US prop shop allow for leverage? If you put in $5k what will they allow you to use?

What if you lose a fortune? I hear prop shops like Swift trade don't come after you but what about prop shops like Bright Trading? Will they come after you for losses?

What if you lose $50,000? Anyone have any experience with this?
More...
 
Quote from Ripley:

You just change your phone number, move to a new city/country, just change your name and don't stay in touch with any of your previous friends, parents etc. Also a plastic surgery would help too. (My friend did this... & he now lives in Mongolia or something where no one can find him.)
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This reminded of me a story from the CBOE, a floor MM in the late 80s (after '87) supposed lost around $8-10M in the span of 2-3 days (with his account only have equity around $2M), and then promptly disappeared (rumors of catching a first flight to thailand or something of that sort), leaving his clearing firm (which shall remain nameless) holding the bag. I have read most of the court documents that has the defendant (the floor MM) as "absent from the country", it was an amusing story.

Now that is losing a fortune, I suppose.
 
Quote from Maverick74:

You will never trade any size with 5k. Just so you know.
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at 100:1 thats $500k. exactly what do you consider size?

too many people have become obsessed with volume when they should be obsessed with profit.
 
Quote from bdon:

at 100:1 thats $500k. exactly what do you consider size?

too many people have become obsessed with volume when they should be obsessed with profit.
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You are talking about bucket shops that trade FX. Those aren't prop firms, those are scam shops. Any idiot that would put down 5k to get 100:1 margin trading FX deserves what he gets.
 
Quote from Maverick74:

You are talking about bucket shops that trade FX. Those aren't prop firms, those are scam shops. Any idiot that would put down 5k to get 100:1 margin trading FX deserves what he gets.
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No I am talking about prop firms in the equity trading business, just as the thread started out.
 
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