prop trading firms

Discussion in 'Professional Trading' started by dafong, Jan 23, 2008.

  1. dafong


    i have an interview with smbcapital which is a prop trading firm. they say that we can trade with the firm's capital.

    so exactly how do they make money if i lose on the capital?

    they talk about trade commissions so if i lose money with their capital, will i get a bill at the end of the month charging me for all the trades that i made?

    anyone know? also any additional advice or info about prop trading are welcome.
  2. cstfx


    "trade firm capital" is another term for they give you leverage for YOUR deposit. Losses come from YOUR deposit. Commissions come from YOUR deposit. If your deposit shrinks to a certain level, your trading privileges are suspended until you deposit more money.
  3. dafong


    so prop firms are bullshit. they're just retail accounts that teach you how to trade. if so, no thanks.
  4. dafong


    if u go to, under FAQs, a question is asked, "do i need my own capital?", it says no. so WTF???
  5. not all prop firms require you to deposit money, i work at a prop firm which req's no deposit. what they do instead is do a fairly structured intensive training period for 3-5 months.
    As for what happens if you lose money thats totally dependent on the firm. At mine we kept a monthly running total were last months negative amount (if any) must be earned back before any profit can be made. So if -2000 last month, must earn 2000 this month before I'm profitable.
    See if you can talk to one of the traders who works there and get the scoop
  6. My guess is that they extend deals to some very promising folks without capital contribution and require capital contribution from others.
  7. jtnet


    they are on the newest wall street warriors
  8. Show me where i can have a retail account that give 200 k to trade for 2 k deposit and .0002 per share. if that kind of retail exist i will close my firm rigth now.
  9. dafong


    lol i get the point. It's not so bad, i'm going forward with the interview process.
    #10     Jan 24, 2008