Futures proprietary trading

Discussion in 'Trading' started by drukes1234, Aug 10, 2007.

  1. much to benefit in futs prop trading; more important things than lower fees and leverage.
     
    #21     Aug 10, 2007
  2. john12

    john12

    i here prop house guys pay 50 cents or so a r/t and give up 50% of there profit
     
    #22     Aug 10, 2007
  3. #23     Aug 10, 2007
  4. 1. It's against CBOT and CME rules for a prop firm to offer member rates to someone who makes a capital contribution to their "prop" account. IOW's there's no hybrid prop traders in futures.

    2. There's few directional traders in Chicago prop shops. Most of the futures traders are into spreading the yield curve. Many guy's trade the basis between futures and cash and it's because of haircut requirements that traders go prop. (Cantor's not going to allow you open up a cash Treasuries account for 50k)

    3. In Chicago 99% of traders use their own capital.
    Since most prop firms are owned by former floor traders then good luck in finding a proprietor who's interested in hiring someone to trade ES outrights. If you're good enough to make money trading directionally then why would you need to go prop? The answer is obvious. It's because you're not making it and need a stake. The prop firm will know that's the case. Chances are they'll suggest you hit grandma up for 10k to fund your IB account.

    4. I would venture a guess that Chicago's entire prop trading community is no more than 300 guys. The world of prop has really come and gone......
     
    #24     Aug 10, 2007