I've been trading the ES futures for about a year now and just learned about prop firms. Are these places an independent trader can trade a companies capital? Reason I ask is that the main fallback I have as a trader is the lack of captial. Is trading for a firm the best way to resolve a lack of capital issue? Thanks
you still have to deposit $5000 trading stocks. only reason for prop trading or true prop trading is no deposit and trading with firm capital. if you have to put any of your own money it's not a true prop firm. from my experience, most prop firms are low profit operations as businesses.
daytrade futures. less capital than most prop firms and no interview crap just to trade for them etc. daytrading has limited profit if you have limited initial capital.
If you have the names of some firms that would be great! Can you trade from your own home? What should i expect when going through a firm to trade?
If you can trade ES with a $500 performance bond, why do you need a prop firm? There are very few, if any, firms that are going to give you more leverage than that to trade in your sweatpants @home.
I would think the main reason for wanting to trade for a prop firm, (a true prop firm where you trade for THEIR capital) is that you trade with NO risk (other than getting fired). This means you can trade much larger size without talking any risk. A lot easier trading bigger size when you trade someone elses money..
Anybody asking this question on this board has more than enough BP with a $5000 account! No "firm" in their right mind is going to give someone a pad with no deposit or track record to flip 50 lots. It is nice in theory to trade ES with OPM @ a prop firm, but in the current market climate, it is not happening without a proven track record. good trading! el surdo
Yes, of course that is not going to happen. Even with a good track record to show for, they would probably have to evaluate you for some time before they hand you the "heavy gunpowder"..
There is firms out there that take a $3000-5000 fee for training / risk managing.. and let you start with $50,000 BP - as they get comfortable with you and see that you aren't a high risk cowboy then BP gets higher J J