I have portfolio margin at IB. I trade options, futures, forex and stocks and some foreign stocks. Is there any reason to go prop? And to make things worse, I live most of the year in Boca Raton, the financial scam capital of the world.
Read these two threads for a good start: http://www.elitetrader.com/vb/showthread.php?s=&threadid=111231 http://www.elitetrader.com/vb/showt...page=40&highlight=short interest&pagenumber=1 And now, for your reading pleasure... Insert Bright Trading Advertisement below:
Thanks for the threads, but I guess the fundamental quandary or question is this: Are prop firms simply stock traders and this the obsession with 4 versus 15 or whatever times intraday margin is only about stocks. I mean if you trade futures or Forex, even retail, you have margin out the Wazoo built-in. So, bottom line: If you have no-stock trading interests, or they are a small part of your trading, prop shops prima facie are not the place to be. True?
Yes i would agree with you on that. A Prop Firm is usually a Firm that trades in Equities Extending Leverage to us little guys. If you trade Equities as a retail account you need to tie up $50K of your $$$ to have sufficent BP. At a Prop Firm you could only put up $5-$10K
Then again, you're not getting a 100% payout right ? Don't most props charge 20% or more off the top ?
So what do retail futures, forex, options traders do when they want to step up to a system that might be a bridge to going pro? No prop shop system for them? Their only recourse to set up their own incubator fund or small CTA with their own capital?
If you have money up at a prop firm you should be getting 100% payout. If not, you're getting ripped off.