Hi, I've read a few messages here regarding prop firms, and some have mentioned "draw" as part of the compensation package. Could somene please explain what this means? I can't find an explanation on google or here (unless I'm typing in the wrong search words!). Thanks, Mauzj
Drawers are another word for boxers or briefs. I like to wear boxers while I trade for that "loose feeling" Try a fan under the desk!
basically they lend you 3k a month which accumulates as debt to be paid off from trading profits after commissions.
I love the overnight session~! Made a few points last night on a long. I wish I had bigger balls! Just chopping some wood today. Net long.
ETG pays a salary (they hire very selectively). some firms pay a draw like an 'advance' if you don't earn money you owe it back. Firms who pay salary are very few since traders don't produce like they did during the bull market.
There appears to be some vagueness about what a draw is. It seems that some ET members are saying that a draw comes from future profits, but if you never make money net, then you DON'T owe anything to the firm. - Meaning they can't seize your assets and make you pay. On the other hand, others are saying that if you end up never making money, then you still need to pay back the draw from your own pockets. Does this mean that each firm applies a different definition of "draw" as they see fit?
the draw exist once they know you and feel that you are not a crazy dude who has a $15000 deposit and will trade 100,000 MSFT one boring afternoon. So they let you take your own money if they feel confortable with you. If you take too much that reserve the right for more deposit. P.S it is hard to find a prop firm who will not ask for some money deposited....