how prop firm works?

Discussion in 'Prop Firms' started by sgrcesco, Jan 9, 2007.

  1. sgrcesco


    Hi guys i'm new, I form Italy and I live in Milan.
    I have a question.
    If I am a quite good trader and if I have a few money, why I should join an prop trader?
    I can make money by my self.
    For sure I miss something....who can help me?
  2. sgrcesco


    Can someone help me?
  3. prop firms offer you leverage. if you are really good with a small account now, surely you could make a lot more with more leverage right? :)
  4. sgrcesco


    let's make that i already trade with leverage cuz i trade futures or Forex with leverage....
    How prop firm give me more leverage.....

    I don't think that ,for example, if i put 10000$....prop firm give me 100000$ to trade future or forex and i can have gain with 100000$ and lose max 10000$.

    is it true?

    It could be true if i lose 10000$ and the firm stop me trade and bring back from me 90000$ that the firm gave me befoure...

    It would be fair....but much more risky for me....

  5. Dogfish


    If you become a backed prop trader then you don't need to put any money down so there is no risk, you just give a cut of your profits to the firm instead. These places are highly sought after though.

    It's not just the leverage, it's the fact that a room full of traders can get cheaper rates on everything from trade costs to equipment. They can also advise you how to progress to the top of your field, have faster connections to the exchanges and can probably do more for you if something goes wrong at the exchange when you're in a large position.

    These guys are in Milan, get in touch and ask them what they can do for you

    The video on their opening page.... :D
  6. sgrcesco


    Yes...maybe it could work well if you are a beginner....but if you are already a trader...that trade well with own fund....
    should the trader join a prop firm...?

    I know join them you don't have put money..they just hire you as an emplyer..and give you a salary and a bonus (i think....)

    you must be young ,smart and willing to have a carrer as trader....but you don't have have money to join it....

    I think that it works like that over there....

    As any firm...they don't hire any guys that noc on them door....

    don't you think?
  7. Dogfish


    I think you have a very good chance of them hiring you especially if you have a profitable track record, age doesn't matter. Why not send them an email?

    I'm fairly certain they don't pay any salary, you just get a split of profits usually 50%-90% depending on your progress. Otherwise you can put money into an account to cover your risk and back yourself for 100%, you'd just pay a desk fee.

    They are a services company they tend to provide traders with what they need in return for a desk fee and a commission of a few cents on each trade you do. It's by far the cheapest way to trade if you do so actively.
  8. sgrcesco


    1) It's not possible to show them my truck record....well..I shoud attach to my CV my bank order history....I've never heard something about that.....

    2)I think that it would much more smart to explain my trading philosophy and no to show them my truck record....It could be only luck ....

    3) I have already sent my CV to them 2 years ago.....they did not care about my profile....

    thanks anyway
  9. Dogfish


    Well if I had the choice of hiring a seasoned trader with a track record - which you say you are and have - or some joker wanting to talk trading philosophy and hide their "lucky" record........

    A p&l record of a few years does all the talking necessary
  10. too right. would a seasoned trader really want to discuss his edge?
    #10     Jan 12, 2007