Prop Firms that require zero or max $2K down?

Discussion in 'Prop Firms' started by allaboutmoney, Feb 16, 2009.

  1. why would they care, if they pay a percentage of the profit made, why would they care if I trade everyday or not, so long as I make a reasonable amount each month and don't get paid a fixed income it shouldn't really make a difference
     
    #11     Feb 16, 2009
  2. MGB

    MGB

    For the sake of this argument, let's assume the payout to you is 80%.

    Trader X is a part-time trader. Generates $100,000 in profits. The payout to Trader X is $80,000.

    Trader Z is a full-time trader. Generates $300,000 in profits. The payout to Trader Z is $240,000.

    Which trader is a prop firm going to accept?
     
    #12     Feb 16, 2009
  3. The prop firm will take both traders because profit is profit and beggars can't be choosers.
     
    #13     Feb 16, 2009
  4. MGB

    MGB

    Beggars can't be choosers?

    Prop capital for leveraged trading is allocated to each prop trader for the purpose of creating profits.

    The part-time Trader, when he's flying on a plane, is not leveraging prop capital, thus not creating profits, and thus wasting the allocation of prop capital.

    Prop companies want to allocated their capital effeciently and effectively.
     
    #14     Feb 16, 2009
  5. NKNY

    NKNY

    WTC offers this with a 50 or 60
    % payout...
     
    #15     Feb 16, 2009
  6. MGB

    MGB

    If I was a prop group manager, my first impression, after reading this, is that your trading is not profitable.

    As a prop group manager, I would think that 10k deposit would be the least of your concerns if you're a profitable trader.

    You may be a profitable trader but the "first impression" I would get from this expectation is much different.

    I would think that a 10k deposit requirement increases the quality of the applicates.
     
    #16     Feb 16, 2009
  7. BP isn't distributed in the way you think it is. They can take a risk that not more than X will be used at once, even if they give out 2 or 3x to all the traders, and if more than X is used, they pay some interest on a temporary margin call.
     
    #17     Feb 17, 2009
  8. I can't disagree with you, but there can be other reasons
     
    #18     Feb 18, 2009