Propriertary options trading firms?

Discussion in 'Options' started by just21, Mar 15, 2002.

  1. just21


    Are there any clearing firms that take on option traders so that more margin than is available in customer accounts can be utilised? Would you have to buy or lease an exchange seat to take advantage of this? What exams would you have to pass?

    thanks for any information
  2. If you are merely concerned about having as much margin as possible, many firms that cater to active retail traders (i.e. IB) have substantially lower margin requirements for option spreads and hedged positions.

    Was that what you are asking?
  3. just21


    I'm interested in how to get below exchange minimum margins for retail customers. Are there any daytrading/propriertay firms for options traders like for stock traders?

  4. just21,

    Daytrading LLC's can give Broker/Dealer margin on option Vs Stock positions-however there are risks associated with doing this
    (the greeks), so most pro firms will require a substantial capital contribution to trade options(if they will let you trade at all). We will with a 50 k capital contrib., experience & a Series 7. See margin and leverage examples for pro traders at our site at and .

    Gene Weissman
    Lieber & Weissman Sec.., L.L.C.

    PS I know IB does a good job with Option customer accts.
    If you want a Broker , as well as automated(autoex)
    trading -check out Mr. Stock & R.F. Lafferty,Benjamin
    & Jerrold-Gene

    See us at
  5. just21 -

    Are you asking if there are firms that will let you buy options on margin?

    What kind of option positions are looking for better than normal margin treatment on?
  6. ArchAngel,

    I assume he meant Broker/Dealer margin when he said"leasing a seat". LLC's can give this type of margin treatment
    with "great" care. On Conversion's at LLC's there is a 5% haircut on the position( for example), I assume this is what he meant. Have a good weekend, speak to everyone next week!

    Gene Weissman
    Lieber & Weissman Sec., L.L.C.
  7. just21


    I'm trying to find out what margin requirements the market makers get and wether that is available to others.
  8. As a broker dealer or market maker, you do get better margin requirements than customers. However, as a broker dealer or market maker there are a few disadvantages.

    First, you CANNOT use the system to enter orders on some exchanges (in other words, you will need a floor trader to enter your order for you).

    Second, you will have to yield to customer orders at the same price even if you have time priority.

    Third, the published quotes may not be honored. They are for customers only and you will probably get faded a lot.