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lionline
 

Registered: Jun 2011
Posts: 57

 

08-11-12 01:41 PM

Hi all,

decided to try this. We have a strategy that requires lots of hard BP (intraday/~0 overnight). The strategy is very very scaleable, and the more BP the more is made.
Simply borrowing the cash won't make sense - it will not return a decent enough return to cover interest and risk and there are no intra-day loans that we are aware of.

Best-case scenario is finding someone with a very large intra-day buying power, and no concentration issues - and potentially going on a profit split with them. We are open to putting up a large first loss capital deposit.

In any event, who would know firms that have access to that kind of capital (the firm having 5MM for unlimited intraday is not enough - they will get hammered by NSCC (or their clearing firms) concentration limits)

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peregrinecap
 

Registered: Feb 2010
Posts: 79

 

08-11-12 03:46 PM

bright offers 20M

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lionline
 

Registered: Jun 2011
Posts: 57

 

08-11-12 04:44 PM


Quote from peregrinecap:

bright offers 20M



Bright is probably not an option - they make their money in commission - this is where money has to be made on a profit split.
The commissions have to be very very low, and have ability to trade with existing relationships with the street.

20MM is bare minimum for it to make sense for us to begin sharing in the profit. Scalability means go to 100MM + and I doublt Bright can (would want to) pull that off.

Although, Mr. Bright - if you are reading this - please feel free to comment if I am wrong.

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Maverick74
 

Registered: Mar 2002
Posts: 17314

 

08-12-12 12:20 AM


Quote from lionline:

Hi all,

decided to try this. We have a strategy that requires lots of hard BP (intraday/~0 overnight). The strategy is very very scaleable, and the more BP the more is made.
Simply borrowing the cash won't make sense - it will not return a decent enough return to cover interest and risk and there are no intra-day loans that we are aware of.

Best-case scenario is finding someone with a very large intra-day buying power, and no concentration issues - and potentially going on a profit split with them. We are open to putting up a large first loss capital deposit.

In any event, who would know firms that have access to that kind of capital (the firm having 5MM for unlimited intraday is not enough - they will get hammered by NSCC (or their clearing firms) concentration limits)



How much capital are you willing to put up?

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lionline
 

Registered: Jun 2011
Posts: 57

 

08-12-12 01:17 AM

depends on the deal and if we are comfortable where the money is held.
Min 100k. Can we put up more? 200k sure, 300k np, the deal needs to make sense.

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WinstonTJ
 

Registered: Jan 2009
Posts: 1947

 

08-12-12 02:52 AM

I hate to sound like a jerk but this IA a classic "if you have to ask" threads.

If you need to ask what a Ferrari costs you probably can't afford it.

The intraday BP you are talking about is more than many legit prop firms as a whole use.

I know four places I could tell you to go to but they are friends and professional acquaintances. If you want to PM me please do so. Be prepared to be asked to speak directly with your current firm for verification that you have reached their threshold and that they are not looking to expand their capital structure.

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