How do Prop Firms control risks?

Discussion in 'Prop Firms' started by qll, Jul 24, 2006.

  1. qll

    qll

    What kind of software/system prop firms use to control risks?

    I am about to hire two traders to let them trade unsupervised. I am afraid if some day, some how, one of them made a huge trade without stop loss or he is unhappy about the profit share so he intentionally makes a bad trade to lose money.

    How do you firms review trades in real time?

    Even if they trade with me, how do I supervise them?

    Is TRUST the only thing I rely on here?
     
  2. Limit B/P, have their accounts open on your desktop as well (2 instances), use software with some sort of auto stop out, watch their order logs real time.

    Im sure there are lots of other ways as well.
     
  3. Maske

    Maske

    The firm I work at uses its own trading system.

    The risk desk can see everyone's P&L, and position.

    Limits are set appropriately for each account.

    e.g, I am fairly new, and can trade 10 bunds, 30 bobl and 40 schatz.
     
  4. zdreg

    zdreg

    do you work for a company?
     
  5. qll

    qll

    i only use my own my money to trade. i need to raise some capital, so i may step away. and i already work 16 hours a day. i need to hire some people to trade for me. trading is a no brainer job. so easy, so much profit.

    i will focus on investing. investing takes 2 hours a day or 10 hours a week. trading needs 10 hours a day and 70 hours a week.
     
  6. ssblack

    ssblack

    don't take this as an insult - but your post makes no sense.

    if your trading has been so profitable, then why do you need to raise money? can't you wait 6 months and really build your own stakes up?

    although, i can see why you'd want a break if you are working at it 16 hours a day - what all do you do with that time (i'm being sincere here, I would kill myself if I traded for 10-16 hours a day).

    scott