Questions about prop trading

Discussion in 'Prop Firms' started by BinaryAlgorithm, Oct 17, 2019.

  1. - What is the required annual profitability (relative to capital used) needed to be considered for prop trading?
    - What leverage is typically offered?
    - How does the risk management compare with portfolio margin guidelines at retail brokers?
    - Do any prop firms support long term and/or non-directional hedged positions or are all trades short term/speculative focus?
     
  2. Nobert

    Nobert

  3. 1) The risk profile of your strategy is more important
    2) It's not leverage like a traditional retail BD. $50k capital could easily get you $1M intraday BP. Overnight is different depending on firm risk tolerance and #1.
    3) At the individual book level, you will have a daily stop and possibly other restrictions.
    4) Most prop firms are primarily focused on intra-day.

    Every firm is different.