I was not thinking of 'trade risk' but a more global risk such as a terrorist attack, or other major unexpected 'Black Swan' event. I believe a prop trader would be protected by the LLC of the prop firm and his risk would be limited to the amount of his deposit. I do not know if this is indeed true and am trying to determine if it is an unspoken feature of trading within a prop llc vs retail. Thank you.
FWIW, our traders are true "limited liability" members of the Firm. We didn't lose any when 9/11 happened (that I can recall), but if we have a trader lose more than their account, we are responsible as long as they weren't in violation of any rules or anything of course. One primary reason for trading prop vs. retail is access to strategies that simply cannot be done by most retail traders (opening only is a prime example since it takes $millions to make a few hundred grand a year doing it)....most retail (I said "most" - I realize that there are excellent and successful retail traders) traders are more in the buy and hold type of thing playing market direction, which is fine, but can be somewhat limiting. There is nothing "right or wrong" about trading at any level or capacity...it simply (to quote my friend Vinni, LOL) "is what it is" - and, as mentioned, I'm glad to chat with anyone about all this. All the best, Don (And, come on guys, take it easy on the Cornstone guy, LOL - he, at least, became a sponsor, didn't spam, and has seemed to up front about what they do...maybe not a fit for you guys, but heck, Bright is not a fit for everyone either)