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Can an electronic trader from home lease or purchase an exchange seat
Hi,
Just out of curiosity, Can an independent trader sat at home in front of their computer lease or purchase an exchange seat to reduce their fees. I was under the impression that one could have traded on the floor or off-floor and on screen and have their fees reduced. Leasing a seat just gave you exchange membership and it didn't matter where you traded.
Can you help answer these questions from other members on NexusFi?
Thanks Mike. I had listened to that webinar but I was just listening to an interview at TST and asked a question about whether a scalper who has just passed their combine intends to lease a seat in the future (some days he was spending a $1000 dollars a day in commission), but everybody including a few TST people suggested my question was tongue in cheek, and that you couldn't lease a seat if trading from home. I was sure you could but thought I would check out of curiosity.
If you are spending $1000 a day on commission, I hope you are making close to $50k a day on your trades. For February (so far) I've spent $1,345 on commission for $51,875 profit, or roughly 2.6%. And I would argue it is far easier to make money this way than as a scalper, which is why I've been sharing all my trades:
The trader he refers to averaged about 2.500$ per day within his 10 day combine.
While - no actually because that is far from the kind of per-trade expectancy you have, Mike, it should make quite a difference in his pocket.
I am not saying that whoever he /she is should focus on reducing fees instead of increasing per-trade expectancy / profit factor / ...
Many ways to skin a cat, it's what makes a market. Honestly $2500 a day is better than I thought But it would make me sick to give nearly 50% of my profits to my broker the CME.
Morad Askar, better known as FuturesTrader71 or simply FT71, will be monitoring this thread so that he may answer any questions that you post here about trading in general.
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Risk Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past Performance is not indicative of future results.
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I work for myself from home and I lease a NYMEX seat for reduced fees (and reduced margins!)
One thing to consider - once you lease a seat your trading earnings probably become subject to Self Employement Tax's. Talk to an accountant.