We obviously keep much more than $10 million to protect the company and traders.....but, why would we allow anyone to lose that kind of money? We have excellent risk controls. [ With $500K aren't you limited to $250K or $100K "protection" anyway. In eany event, most keep under $100k, and use our money to trade with...makes more sense to keep the other $400k in your mattress, LOL. Of course we have many who keep $millions, and they don't seem to be too concerned. All the best, Don
You have it right...it's our money, not investors, not shareholders, etc. and we keep a pretty good eye on it several ways. To protect the trader from themselves, if they are losing over 10% of their net account value, that pops up on risk control If anyone is excessiv overnight, without prior permission, that shows up. We've had less than a handful of events in 17 years that even got into the negative more than a few grand.... and many of those traders we worked with until they positive again. Don
All prop firms regardless of their setup provides more leverage than PDT allows. Also, all of them uses a 'sub' account for their traders. The money on deposit by a trader has no protection under SIPC. Your funds are only as safe as the prop firm.
LOL, must have missed that post while I was traveling last week..... It's funny, the other day I heard the "latest" financial guru type on my local radio (read: Super snake oil into this).... he was quoting Buffett, Soros, Geithner, etc. about how they are conservative investors....alluding that what he was offering was, in some way, being either used or supported by these people (as if?). This guy said that if you put up $$$ with his group that they would immediately give you 11% in cash to add to your "secure" investment....etc. My point is, that when I hear gov't officials or big money gusy names popping up,,, I tend to cringe. Now, back to Geithner and Bright.... "we don't take on reckless cowboys' LOL. Sorry.... So, Atticus, we never hooked up here in Vegas last year.... PM me when you plan your next trip.... All the best, Don
Mr. Bright, you say that if a trading firm opens a brokerage account , recieves 4-1 leverage, and gives out the extra cash/leverage to traders to trade this is illegal in most states. where have you gotten that information from? I just want to make sure b/c im considering opening an account with firms that do this.
I can't really comment on legal issues on the board here. Retail firms who try to circumvent the PDT rules have bees discussed here a lot over the years. Just do you due diligence, and hope for the best I guess. Don