I only need margin financing - frustration

Discussion in 'Prop Firms' started by lukas, Jun 28, 2017.

  1. garachen

    garachen

    What you want is how many firms indeed operate. in fact, the whole concept of margin kind of disappears and is replaced by in depth risk analysis.

    This is a very time intensive process involving several highly paid people and isn't something you can just "sign up" for. They need to have strong indications that your commissions would cover their costs and more. At least $500k/year. Think about it, you basically want them to throw out the exchange margining system and replace it with something very customized to your position and trading style. There's a lot of inherent risk in doing that for any customer.

    Sounds like your best option is to use someone with lower intraday margin. That is pretty easily done. But to hold overnight you'd have to go through what I described above.
     
    #11     Jun 28, 2017
    ajensen, dealmaker and tommcginnis like this.
  2. Mtrader

    Mtrader

    I agree but if he wants that he will have to start with at least $1,200 margin to show his trading style. If he is good during at least 2 weeks he can go to $500. Receive $500 margin from start as a new client is difficult to find.
     
    #12     Jun 28, 2017
  3. A margin call will be issued,
    to be met at specified time.

    If and when, unanswered.

    Liquidation is immediate with apology. LOL
     
    #13     Jun 28, 2017
  4. Xela

    Xela


    There may be(?) but that doesn't make it reasonable or sensible to trade ES with $300. And it isn't.
     
    #14     Jun 29, 2017
    murray t turtle and comagnum like this.
  5. Mtrader

    Mtrader

    People who need $300-500 margins are lousy traders. Because, if you cannot make money with a normal margin, you want to have the huge leverage to compensate your weakness. Just to compensate the lack of performance. And wanting that huge leverage will cause the inevitable wipe out.
     
    #15     Jun 29, 2017
    rb7 likes this.
  6. speedo

    speedo

    Many of us have wiped out an account or two along the way but there is little to be gained or learned by wiping one out in the first 3 minutes of your career.
     
    #16     Jun 29, 2017
    Sprout, Xela, comagnum and 1 other person like this.
  7. comagnum

    comagnum

    The predatory HFT's know the pain levels based on various brokers intra day margin levels and and constantly puke out these traders that are margined to the teeth.

    Any broker that would let their clients trade the ES with only $300 is not one I would trust.
     
    Last edited: Jun 29, 2017
    #17     Jun 29, 2017
    Xela likes this.
  8. What I don't understand is prop firms in London offering margin financing for a profit split, when there are brokers offering $300-$500 ES margin around.
     
    #18     Jun 30, 2017
  9. Xela

    Xela


    It might be related to the fact that most of their targeted customers - and certainly the ones they want to attract - have the sense to understand pretty clearly whether or not it would be reasonable to use a "broker" who does that, so they're not in "competition" with them in any meaningful sense of the word.
     
    #19     Jun 30, 2017
  10. %%
    No wonder= one of IBD trading rule$ is ''dont answer a margin call'' LOL
     
    #20     Jun 30, 2017