Risk Management for Retail Trader

Discussion in 'Risk Management' started by wdbaker, Sep 11, 2002.

  1. wdbaker


    Hypothetical situation:
    A friend of mine opens an acct and puts $25,000 in it, tells me I can trade his account if I deposit some money to cover any loss, say $5000, and if we can guarantee his $25,000 is protected(i.e. if the account drops to $25,000 all is liquidated or some such intervention. similar to a Prop firm but retail)

    Is there a way to do this or a brokerage that can handle this.

    This may not be so hypothetical if I can find a way to do it.

  2. He is just going to have to trust you ...
  3. AllenZ


    Remember you are also going to have to trust him as you will be depositing money to an account you have no legal claim to access.

    I have done this before, takes a lot of trust on both sides.