How does this work?

Discussion in 'Prop Firms' started by totti, Mar 9, 2003.

  1. totti

    totti

    Hello

    Im just wondering how this business model works.
    Are they earning only from commission?

    thanks


    :confused:
     
  2. I would think it should work similar to that. But maybe we should ask them.
     
  3. Momento

    Momento

    what firm and what business are we talking about here?
     
  4. totti

    totti

    sorry

    I was talking about firms like Blight Trading LLC
     
  5. nkhoi

    nkhoi Moderator

    it works well up until Momento asking "what firm and what business are we talking about here?"
     
  6. the answer to the original question is yes. They try to break even on actual profit/loss from trading. If the traders make profits that is nice because it keeps them trading, but not absolutely necessary.
     
  7. Yes. Sort of. I used to work there. They make money from commissions, which are pretty low, AND a desk fee which is expensive unless you do decent volume. The fee was $600 per month for the worst charting program I had ever seen, and Redi+.

    They were mostly tape readers in my office and gave tech analysis little thought or investment.

    The upside is that half the traders were long time vets, and the company is very honest.

    Jay
     
  8. Is that a shot across Don's bow?
     
  9. It sounds as if we're going to be discussing much of this on Thursday, right after the market close. So, send Andre some questions ahead of time, and I'll do my best to help out.

    Don