How do prop firms operate?

Discussion in 'Prop Firms' started by matador04, Nov 2, 2007.

  1. So I have cash and instead of opening a retail account at IB or ThinkorSwim, I hand it over to BrightTrading LLC and they loan me $1m...

    I'm kinda clueless so please help me understand the business of Prop Trading. Am I an employee, an indy, client?
  2. Are there prop firms that allow traders to trade options/futures/swaps, etc?
  3. zdreg


    can you also please explain the difference in terms of operation between prop shops
    and non prop shops which operate in a somewhat similar manner.
  4. what do you mean by "difference in terms of operation" exactly?

    in a true prop trading set up, the trader gets paid a salary, a small cut of the profits, and assumes no risk. proprietary trading setups as we all know them (see Echo, Bright, etc) are nothing more than disguised retail accounts with a bonus: leverage.
  5. Since options aren't margineable to retail guys, are there prop shops that will let you trade options? And if so, can you hold your positions indefinitely?

  6. Yes.
  7. go on
  8. pm me if interested.