why prop firms pay people to trade?

Hmm....

As far as I know most firms let you trade firms capital but most don't offer salary. They are really fast at axing newbie's.

Dragn
 
Sure you can find some firm out there advertising a salary, go ahead and see if they will actualy hire you. Good Luck. In most cases its just a bait and switch. And none of you work at the firm you are talking about, or even know anybody that works there, so you are full of shit as far as I'm concerned.
 
Quote from 0008:

We pay money to go to colleges. Why do they pay money to people and teach them? I think they know many of them wouldn't be successful. Those make it may not stay with them. What is the point of doing it? FNYS pay 45k to people, is it a charity?
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There are many companies in this business that still will train you and provide an environment that encourages continued employment with the company after some initial training period. These firms are hard to find and they are generally smaller entities. While it is true that many companies want to maximally exploit their workers there do exist entities that are genuinely interested in a long term employee relationship. FYI there is a payback in providing training to an new hire: to get them to stay the company has to be interested in rewarding people financially as they develop. Most companies are not interested in this type of relationship and once you hit a compensation benchmark they either force you out or fire you or simply let you know that you can only stay if you are willing stay at the compensation ceiling......
 
REAL institutional trading jobs generally pay about 200k a year, and are next to impossible to get right now....MBAs PHDs or whatever with inst. trading experience have the best shot, but good luck. These should not be confused with 'Prop' shops, that generally are more sketchy, and dont pay salaries.
 
Quote from SilverBullet:

REAL institutional trading jobs generally pay about 200k a year, and are next to impossible to get right now....MBAs PHDs or whatever with inst. trading experience have the best shot, but good luck. These should not be confused with 'Prop' shops, that generally are more sketchy, and dont pay salaries.
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Actually, if you look around you will find REAL trading jobs that pay the mentioned level and more. Smart Phd's dont get locked into indentured servitude types of situations: those REAL institutional jobs you speak of are REAL sweatshops where you will typically be asked directly or indirectly to work excessively long workweeks: when you add up the hours and divide it into the pay, you are not doing very well. For training they work: For an ongoing position with a firm they are usually not good deals and you are expected to move on after a couple of years.... Not my idea of great position ... There are REAL prop firms that take you on as an employee... In the right one you can stay as long as you want and make an exceedingly good living...
 
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