I am new to the prop business, but not new to trading. I have been trading a dollar neutral strategy for a couple of years with very good results. I hold a position anywhere from a day to several weeks.
I have been talking to a couple of prop firms and it seems that there is no problem getting access to capital. After doing some math however I starting getting sceptical.
Lets say I trade 1mm, I would turn over 10-15k shs per day. Using the high estimate and paying $.005 all in I would generate $75 in comm per day, lets call it 20k per year.
So the firm would only make 2% from my trading, hence my question....Why would they allow me to trade their capital when they can make more money holding CDs?
Surely I must be missing something here because it doesn't ad up, what gives
I have been talking to a couple of prop firms and it seems that there is no problem getting access to capital. After doing some math however I starting getting sceptical.
Lets say I trade 1mm, I would turn over 10-15k shs per day. Using the high estimate and paying $.005 all in I would generate $75 in comm per day, lets call it 20k per year.
So the firm would only make 2% from my trading, hence my question....Why would they allow me to trade their capital when they can make more money holding CDs?
Surely I must be missing something here because it doesn't ad up, what gives
