THinking of going back to trading, what is standard lockup?

Discussion in 'Professional Trading' started by gunslinger, Apr 28, 2011.

  1. Hello,

    I am thinking of going back into trading, having a friend a decent size BD in NY I met with them. They told me $20k deposit, paid once/month, $.01/share net, 95% payout.

    This is all fine, but I was told my funds (principle) would be locked up for a year as it is a prop trading rule,is this correct?

  2. When you join a Joint Back Office (JBO), you're investing your money in a Broker Dealer as a Limited B Partner. Then they give you a sub account of the firm to trade in. The SEC requires a 365 day lock up period for that investment. Then, when you trade, they can provide you whatever leverage the firm wants to relative to the firms capital.

    If you don't have the assets for a your own Customer Portfolio Margin account, this is the only way I can think of to get leverage over REG-T.
  3. .01 / share net.... even if that is all in that is a TERRIBLE deal.
    .004 / share + the extras with no volume requirement is considered probably average

    -------> locked up for a year.... that's the way it goes for a cboe firm