At retail level ( Futures) is anybody aware of any brokers/ firms who specializes in First loss trader funding ? where retail investor can participate as Funder? ( not as a trader seeking capital but the other side of the equation) - The firm must be established in a jurisdiction known for strict regulations - Futures trading I also have this related inquiry If this has to be done as private arrangement ... Is there any software risk management tool or service at retail level (futures) where an account owner can manage the account risk independent of the 3rd party trader! Let me explain The functionality I am looking for is> - Lets say a 3rd party trader is going to trade my futures account under a LPOA which has say 20,000 in it and I want "ALL positions closed IF net liquidity goes down to a pre determined level " say 17000 "Global Stop loss level" in this example. - I want to set this GSL independent of the trader and the trader should not be able to change it. -lets also assume that all the a/c is allowed to trade is Futures contracts - The positions may go overnight not just day trading - I want this feature as set and forget so I dont have to watch what the trader is doing 24/6 I have asked many brokers but no body can guarantee such a GSL Any ideas?
we are talking about overnight not intraday! and to trade 3-4 contracts you need 4.5K x no of contract 3k is not going be enough ,,, I am not sure you are getting my point, Lets say you have 3K first loss but you wan to trade 20K a/c that is where a funder comes in to picture!
Futures are not deposit prop traded. The risk officers are either not smart enough or don't want the headache. I know of only one firm that would do that, but it isn't 10k you'll be putting down. Think two hundred thousand.
I had a situation, a trader wanted funding and the broker (large reputed Asian Bank/ broker) had offered following to me/us, I deposit 100K in any Bank a/c in that country, and pledge that to the Trader which had 50K in his account , the agreement between me a and trader was if the Net liquidity goes down to say 110K we stop trading.. but we could not close the facility only becasue the broker could not guarantee that the trading will be stopped if that net liquidity is reached! Obviously over the weekend or even during the day anything could have happened and neither me or the trader had resource to monitor the a/c On retail FX some brokers have a tool like that but I dont like OTC becasue of obvious issues with OTC wild west!