Result has nothing to do with SEC (or any other regulatory agency). Our traders all trade our account, are fully licensed, and may "use" our capital (not "abuse"), as a tool to make their living. My brother and I started out the same way back in the 1970's. We had to buy Exchange seats, but thought it was pretty cool that we could put up $25K or so, and then use a $million or more of (what is now) Goldman Sachs money to trade with....keep our profits, etc. All GS asked is for us to clear our trades with them (so we started the same business model in 1992, and is working well). Don
"I am new and just want to make sure I understand how it works before I accept a position." That is obvious. "Do some firms really offer 100-1 leverage?" 100:1 leverage is not the path to quick riches for a new person. It is the path to almost imminent loss of your $5K or whatever. Your likelihood of success at those odds, are almost the same as NASA picking you to lead the next Shuttle mission. Do you know what the terms "Risk of Ruin" or "Bug on the windshield" mean? Do you know what the terms "fresh meat" is? That is what you are to the industry players.
Hi Don, If a trader put up say $25k at your firm what might be the range of leverage or "use of capital" this trader could expect to receive? Would a trader be forced to to be flat at day's end? Or could a trader be like a mini hedge fund manager holding core positions overnight and with this "use of capital" also trade other stocks during the day?
Well, most traders can use $1million or more with $25K. And, we have never really been a "daytrading" firm, and our traders generally keep core postions, pairs, mergers/acquisitions, swing trades, etc. overnight or for weeks/months. On overnights we like to keep to around 30 times equity of hedged positions, at least until you've been with us for a while. Having the use of capital opens many strategic doors to the traders that would otherwise not be possible with a normal retail account, that's our traders edge. All the best, Don
Ok Don, while using a million dollars of capital at Bright Trading if I should "luck up" and make $100 dollars; what are the payout plans or how quickly can I get my hands on my $100 bill.