MoneyBall, A good prop firm should have a good risk control system in place. Do you think they will allow you to risk more than your deposit without any control? Usually when you lose more than your deposit, they will close all your positions.
bank deposits in banks are protected...so why isn't a trader's deposited in prop trading accounts insured against firm insolvency or embezzlement is common sense but it isn't which means it must be TOO RISKY FOR anyone to insure or uninsurable.
What was the net capital of Refco when they blew up? Much more than $10M I am sure. I hear there was a big short put position (long net position) in GM and what happen if that caught the credit cruch of the housing or mortgage sector. Timing may have been on your side this time. Pooled money is a risk no mater how you look at it. You must trust the class A Members with your cash....nothing more to say.
Chimera is probably one of the most sound goups in NYC as they do not engage in activities that will jeopardize the firm's capital. the guys are very trustworthy and i suggest to anyone who is interested in a group under assent to pay Chimera a visit and talk to either Jared or Jayson. they have been very flexible with me and i strongly recommend them. you can abtain Chimera's contact info my calling assent's main office.