Trading with no money.....what? yes, that's right, and heres how it works: 1. Someone, lets call him "john" calls me up and says "I wanna buy x # of shares of xyz) 2. I buy his shares at market price unless otherwise stated using MY money 3. I hold for a fixed length of time (lets say 3 months max). 4 When it comes time to sell either by john calling and wanting to exit his position or time on the trade has expired, I sell at market or a specific price. 5. Now say john wanted to buy 1200 shares of rimm @ 151 and sold at 154.20 .. he made 3,840 , and I get 20% (768.00). If he lost, he ows me the full amt of the loss, plus 20%. 6. Just like a broker I make $ either way, and john gets what he wants because he doesnt have to put any money down, but he'll pay out the ass for any losses . 7. Bets cannot be larger than their home value. cm
If he loses, whats gonna obligate him to pay you anything? Seems like he can just walk away and stick you with the loss.
A cross between a bookie and a broker. A brokie. I like it. Get some muscle behind you and I'd say you got a plan.
A contract will be signed. Probably something like a credit card charge to his account..or a lien on his house to cover the loss.
You've basically described a bucket shop. You put up money for margin and there's little room for error. Wheeee.
Hows this illegal... Back during Katrina, we formed a contract with our tenants on a blank sheet of paper describing the rules and conditions..they signed it too.