Terms and Real Costs

Discussion in 'Prop Firms' started by Canuck709, Apr 13, 2009.

  1. Hi all,

    As you can see from my flurry of recent posts I am attempting to do as much research as possible to ensure I have a clear pictures of what's required to trade for a living. Unfortunately I have become a bit confused and would appreciate any efforts to clarify the following:

    A) types of roles to "trade for a living" I.e. Prop (thei capital) vs prop (your capital)
    B) standard terms of each role I.e. Splits, BP etc
    C) Fees related to A and B.

    Thanks in advance.
  2. i think your trying to make a divide that isn't there.

    at the vast majority of prop firms u are trading your own capital. youre never really trading the firms as theyre just providing you leverage.

    u put up 5k, 10k, 20k and they provide something like 20:1 leverage.

    u blow out your "risk deposit" or "capital contribution" or whatever and they show you the door.

    so if u want to think about the leverage on your own money as the "firms" then go ahead.

    The only prop firms where youre really trading firm capital is those that pay a salary. they charge u a horrendous commision fee and very low profit split (like 40-60) plus don't pay profits if u are below the watermark. They give training but you have to be EXTREMELY profitable to take home any decent money IMO. They are more selective of their candidates b/c u dont have to put up any money so they bear all of the financial risk.