When to negotiate rates with firm?

What I meant is, that when you are trading a stock, anything could happen. If you have 20K MSFT, they could get halted and reopen 10 bucks lower. If you trade at most prop, you are on the hook for the 200K. A real prop will eat the loss. Big difference, one is a professional situation, the other is glorified retail.
 
Yes I agree with the glorified retail, on the hook thing. My point was more that 'real prop firms' accept natural market risk as part of the business. Yes , anything can happen , and often does. The key is that good true prop firms educate their traders to situations that represent risk and play an active role in monitoring things such that their traders are not just constantly flirting with death. Risk is neccesary to make return, and it needs to be managed.
It would be unfortunate if the first time a trader took a 20 K position in MSFT it got halted, and then opened against him 10 points. It is of course a possibility, but in all likelyhood not highly probable. However, loading the boat on something like ABK or MBI, knowing full well the environment that it is in , well thats a different story. That is where discretion becomes the better part of valour, and shit just needs to be controlled.

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You need to find a new firm. You said commissions are 75% of profit....I'll take this statement as that you are a profitable trader. If so, no firm should limit a trader's volume under 100k due to low BP. time for shopping casper
 
I'm surprised no one mentioned it, but if he has $25,000+, he could just go to IB and get .005. Maybe not an option if you don't have the money, but if you can get to that point, you've lowered your commission, and if you aren't getting much buying power then does the 4-1 of retail make a difference?
 
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