Definition of a prop firm | Traders Hideout


futures.io - futures trading strategies, market news, trading charts and platforms


Traders Hideout


Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons




 

Definition of a prop firm

  #10 (permalink)

Market Wizard
Boca Raton
 
Trading Experience: Advanced
Platform: Variety
Broker/Data: Optimus Futures, LLC
Favorite Futures: Futures
 
mattz's Avatar
 
Posts: 2,384 since Sep 2010
Thanks: 2,320 given, 3,460 received



xplorer View Post
Thanks Matt, well, if they provide unpaid training then they would be legit prop firms in my mind.

I think you just focused on one sentence. A prop firm could potentially have an educational arm, where someone could share with you his or her knowledge for a fee. However, that is an additional source of income and not where they (in my opinion) get their talent pool from. The "legit" part again, in my opinion, is the selection criteria, splits, and whether you need to show a real-time record.

Ask yourself one question: "what would I require from anyone if they asked me to hand them over my money to trade?". Further, Imagine you had a number of talented people you can choose from, and now you can be selective with your criteria. This would be a good start to think how props would act as well.

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
Reply With Quote
The following 2 users say Thank You to mattz for this post: