How do prop managers decide buying power

Discussion in 'Prop Firms' started by giggollo, Aug 28, 2006.

  1. FutTrd

    FutTrd

    I think Don is saying it exactly like it is.

    but its important to examine what he says

    bright trading thrives if their traders make money and stay for long term.

    what that means is that Bright Trading company doesn't like to do business with traders that are very good and would leave in a year, after making enough money to not need bright anymore.

    so there is such a thing as too good for your own good.

    luckily, if a trader is smart enough to be really good, that trader will discover CFDs
    that give 200:1 margin, all one needs to do is obtain even a small amount of money like 15 k.
     
    #11     Aug 30, 2006
  2. Hmmm, well we've fount that the really good traders who make $millions, have been able to back other traders without risking their fortunes, and multiply their earnings when done right. This is more common than the 1 or 2 who went on their own. But, truthfully, it makes us feel pretty good when someone can do well and use their own $$ to trade with.

    Don
     
    #12     Aug 30, 2006
  3. What does CFD mean?
     
    #13     Sep 5, 2006
  4. An arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than the delivery of physical goods or securities.


    This is generally an easier method of settlement because losses and gains are paid in cash. CFDs provide investors with the all the benefits and risks of owning a security without actually owning it.

    From www.investopedia.com

    Don
     
    #14     Sep 5, 2006