I don't like SMB, I read their website and recommended a few traders to go there and talk to Mike. These traders were looking for a firm that fully backs with a profit split. From reading their site, I assumed that a trader didn't need his own capital. Oh well!
so what happens in such a case where the firm fully backs the trader, when the trader is down ...let's say $25,000. overall, does the firm take the loss or is the trader required to make it back or cough it up before he/she leaves the company?
I might start my own firm where i fully back the traders. Lets be smart, there will be risk parameters to prevent a trader from losing that much. However if it does happen, I will eat the cost, as should a true prop firm.