Overnight leverage

Discussion in 'Prop Firms' started by zenith, Mar 23, 2006.

  1. i think he's just lucky.
     
    #71     Apr 9, 2006
  2. Luck goes to the prepared mind.

    Does it not ?
    :)


     
    #72     Apr 9, 2006
  3. Prepared and lucky are not a bad combo.

    I left out one fact, He is over 40 and still benches 300+ so if we disagree with his positions than he flexes and the risk manager backs down.

    Don't mess with the Tiv.:D
     
    #73     Apr 11, 2006
  4. Hold Brothers offers 5 to1 overnight leverage. More experienced traders are known to receive 10 to 1 overnight.
     
    #74     Apr 11, 2006
  5. In all fairness, I would have to think that Hold Brothers offers more than that.. they've been around a while and know that 5 to 1 overnight is not going be close to enough capital.

    Don
     
    #75     Apr 11, 2006
  6. Mr. Bright,

    In due respect, I would not want my money sitting in an LLC account with extended overnight leverage granted to a whole host of traders. 5/10 to 1 leverage is reasonable risk for an overnight prop LLC to risk manage and protect. As I recall, many day trading firms went bankrupt in the late 90's and early 2000's due to extended overnight leverage, unfortunately I have witnessed this personally. As we know, this account money is not SIPC protected and I have seen many traders lose everything due to extended overnight leverage provided by trading firms.

    I have been a professional trader since 1994 and this game is all about risk vs reward. Many day trading firms don't even offer overnight leverage anymore due to the risk factors involved in overnight trading.

    Respectfully,

    Dave
     
    #76     Apr 11, 2006
  7. I agree with you...many of the smaller firms have a lot to deal with, risk wise. We are in the fortunate position to be able to put $10million of "owners" capital directly into the traders portion of the LLC to protect them from one another. In addition, we have around $200 million that is not being used, and we also don't even have to use our traders $$$ for net capital requirements.

    We understand risk well, monitor it well...and have never had a "blowup" over $100K by anyone in 15 years. We monitor by group, by stock, by sector, and by overall market risk and I assure you no group of traders is going to affect any other trader.

    The firms who "blew up" I know about, and in all cases it was the owners foolishness, not even a "rogue" trader that brought them down.

    Most of our large overnights are paired off market neutral positons.

    One more thing, since it's truly our money, not "OPM" or "shareholder's" we keep a real close eye on it.

    All the best,

    Don
     
    #77     Apr 11, 2006
  8. Maverick74

    Maverick74

    Don,

    I believe the other poster was asking about Hold Brothers. LOL.
     
    #78     Apr 11, 2006
  9. "I gotta start reading before I start writing, LOL"

    Don :p
     
    #79     Apr 11, 2006
  10. HEy Don bright
    Is you application still open for pll who want to put 10K up front.
    But dont need a serier 7
    Thank you
     
    #80     Apr 11, 2006