Firm that offers low low commissions and takes a % payout

Discussion in 'Options' started by WhiteOut56, Jul 30, 2010.

  1. I've never traded options but I'm interested in market making as I'm able to do this in equities. What I have learned is that margins are very very thin and you need a firm that let's you trade a cost and makes their $ off of a % of profit. Does this type of firm exist? If so recommendations?
  2. ptrjon


    in a world where a lot of people made money trading options, such a firm could exist.
  3. Maverick74


    Sure, we do that. Are you actually interested in pushing quotes through in a two sided market? Are you saying you wrote your own software to do this?
  4. Maverick: I just read your latest post on Don Bright. How come you look down on a deposit of 5k? You wrote "We do that". Who is the "we"? What is your terms?

    Does anyone know more about this Maverick74? The words the person uses in his posts and the post demeanors raise question marks.
  5. Maverick74


    No one makes money in that situation. Not the firm, not the trader. Bad risk/reward.
  6. Bullshit. I can explain why it is bullshit, but I believe you already know it is true. If so, is there another reason for the look down on the 5K?

    If I had a company of that sort, I would actually require that newcomers do not deposit more than $5K, and first show me they can make money on the $5K, before going higher. I would treat others like I would like others to treat me.
  7. I think this is what Mav meant....
    When we say prop trading, more so we mean, the trader is full time trader or at least aiming for. So with 5K the man has to earn his living. Than can be done only with extraordinary Risk which spoils the Reward. So can't be done.

    For a extreme discipline skilled trader (or Paul tudor) that is still possible, but even paul will work with very tiny risk with tiny reward and work his way up.
    For a normal new guy, who is learning to trade and don't have capital more than 5K, the prop firm management has to put in lot of "attention" to keep him on the track. It does not make business sense for the prop firm. The only upside is this new guy may become extraordinary trader and if still trading with the same prop firm, then only It will benefit the firm. In short, it does not make business sense.

    Though it is not impossible. The odds are extremely low.
    A good trader will always play by the odds. :)