Prop trading looks great, then why most retail traders don't simply join in?

Discussion in 'Prop Firms' started by OddTrader, Jul 27, 2006.

  1. cashonly

    cashonly Bright Trading, LLC

    Just a headlock? Hmmm... Don's getting soft... Bob isn't gonna like that he's not doing full-nelsons anymore! :D :D :D
    #41     Jul 28, 2006
  2. Hi Cash,

    What would be a typical range (specific please) of leverage in general for remote prop traders' intraday (never overnight) trading on only QQQQ alone based on purely directional long/ short trades, without any hedging or pairing? TIA.
    #42     Jul 28, 2006
  3. cashonly

    cashonly Bright Trading, LLC

    Specific to who? I have traders we know real well that we've given 50:1+. I also have traders we know real well that we've limited to 5:1.

    Generally, for what you're describing, you'd probably be looking at 20:1 to start and then based on your personal volatility, it would be adjusted.

    #43     Jul 28, 2006
  4. Maverick74


    No, I'm not allowed to post it. If you do a search in the upper right hand corner for prop firms and overnight leverage you will get a lot of results. There are countless firms that do this.
    #44     Jul 28, 2006
  5. #45     Jul 28, 2006
  6. I agree, series 7 and 65 are a cake walk.

    Mr. Bright,

    My question was related to how prop firms make money. Every time I've asked, someone skirts around the issue by talking about how much the firm pays in fees and such. The firm is there to make money. If you claim that the traders keep 100% of their profits, the money has to come from commissions, correct?

    Maybe Maverick can help me out on this one?
    #46     Jul 28, 2006
  7. If the firm has only prop trading and nothing else, they make $ from your commission.

    BTW most of the prop firms charge you commission higher than retail like IB unless you are proved profitable with large volume.

    I wonder if there are prop firms that charge you option commission lower than IB (i.e. lower than 0.75 per contract).
    #47     Jul 28, 2006
  8. alesanti


    I am completely new in this. Can you bring a list of websites of prop firms?

    Thank you
    #48     Jul 28, 2006
  9. Fair enough, thanks.
    #49     Jul 28, 2006
  10. Bullet


    OK, lets go this route.....A dozen retail firms will offer commission in .02 to .035 range (some may even be lower depending on volume) on stable platforms with good tech and brokerage support.

    That being said...lets have folks on the prop side offer commission ranges for traders doing from 100K shares a day to 1 million plus shares. And I KNOW other things leverage...however, if a scalper is trading 500K+ shares a day...a penny here and their is a ton of money.

    I only interested in an expanded conversation, I am retail and do not need any leverage (thus I am not interested in going Prop).....I am only interested in furthering the discussion for folks interested in Prop.

    Good Trading to all sides!!
    #50     Jul 28, 2006