good to hear, you can always move on in the future, hopefully their will be no problems with your funds being returned, some places can be real holes in the wall to work in, thats why i prefer remote, no distractions.. good luck..
....."traders are "Limited Liability Members" of the firm...." What I am not getting is "limited" to what extent? What portion of the penalty goes to the trader?
the problem here seems to be with the fact that everyone at a firm is responsible if something goes wrong because they are all part owners of the llc. at least that's what it seems or is percived. more palatabe to the trader would be a clause that clearlt states ,"a trader is only responsible for his or her losses".
rearden.. great point, everyone keeps thinking about small deposits , but once you get rolling & want to have 1-3 million or more buying power, to grow as a trader where do you go. leverage is key... with the right prop firm your golden. do your dd as you would in starting any other business venture.
What prop firm will give a newbie $1M-$3M in buying power? He'll be lucky to get $150K. The bigger leverage only goes to experienced, profitable traders with a large bankroll to begin with.
your statement is correct. however as a proportion the leverage the big trader will receive is much much greater than that of the small trader because of his track recod.
Penalties? If a trader makes a violation, he's repsonsible (although, as I've said, we, the firm, are ultimately responsible since we are the broker dealer). As in any business, the 'limited liability" is simply the amount the trader has put up...so, yes, the trader "can" lose their money (hate to see that, but it does happen, LOL). don
In our firm, it's not the amount of BP, it's what you're using it for. For example, our new traders can certainly use a $1million or more for opening only orders (low risk, high reward)...but not for buying 5000 shares of GOOG or something silly like that. Don
What if the company makes a violation, would the trader, being a member of the company be also liable, and could forfeit all or some of his deposit?
to clarify, the intention for prop is to have the opportunity as you grow as a experienced trader, that the doors open up for higher amounts of leverage. a experienced trader with good amount of risk capital can neg bp above 1 million with several firms.. new traders is a different story of course.. just that prop offers plenty of upside for those that want to expand their horizons with needing several million in bp. its available for experienced traders that can control risk & that have a sizeable account balance to offset the risk.. a perk with prop..