Profit splits

Discussion in 'Professional Trading' started by chowhound888, Sep 13, 2010.

  1. Let's say that your an experienced trader but you've gone through a rough patch. You work out an arrangement with your prop firm where you are essentially trading their capital for a split.

    You turn a corner and start consistently making money again, but are you now completely beholden to that arrangement, even if you are willing to put up all the risk capital?
     
  2. No one?
     
  3. jbales63

    jbales63 Guest

    The arrangement available to me had no obligation for repayment or commitment for specified period of time. Generally The trader was expected to make enough money for the firm. To get what they perceive a s a risk to reward and expenses very soon.aND That they were gone if expectations weren't met. And if they were still trading they had already made large returns of money for the firm. IN a good splir and deal like I had there was no motivation to leave . There is no way for someone like myself to fund an account to the level that is equal To trading a zero balance account. Margins are set on ability etc not funds. commissions are less than a dollar. VERY CONDUCIVE TO YOU MAKING MONEY. AND THEM AS WELL.
     
  4. So, are you saying they made sure you were good capitalwise when you had a bad run?

    What does your agreement say in regards to the terms, duration or persistence of that arrangement?

    How do you stand in regards to how well have they done from their share of your trading splits so far? ie: have they been rewarded for their show of good faith?