prop firm traders...

elitejets · May 1, 2009, 1:03pm

Quote:

Originally Posted by MrGecko

AM, are you sure you're being mentored, not groomed?

Said the Gecko wearing a bikini ..

fat chance · May 1, 2009, 1:31pm

Quote:

Originally Posted by arabianights

don't forget to tell them you're going to trade at random and earn the spread!

It's so hard (in the sense of being random and unlikely) getting a trainee position at a decent prop shop... so many similar applicants... that maybe the "earn the spread" philosophy could clinch it. Better a competent market maker that manages his risk than somebody who _thinks_ they can predict the market direction and ends up holding on to massive losing positions.

Technically Fundamental · May 1, 2009, 1:46pm

Technically Fundamental started this thread

groomed lol.

wtf is earning the spread. You need to explain this stuff without trader jargon 1st.

MrGecko · May 1, 2009, 1:49pm

the spread is the difference between the bid and the ask. You can earn the spread by buying on the bid and selling on the ask.

Technically Fundamental · May 1, 2009, 1:51pm

Quote:

Originally Posted by vinicius

Are you German Aero?

You remind a friend of mine.. Really good person, but he talks too much!

Arabian, Do you trade for a company or for yourself?

I'm actually negroid. Jamiacan/Greek if you want to get pedantic.

I know I talk too much. Check the board at any time 9-5 and see how many threads I've had last post. I find it hilarious.

KillPhil08 · May 1, 2009, 1:56pm

omg

Technically Fundamental · May 1, 2009, 2:05pm

Quote:

Originally Posted by MrGecko

the spread is the difference between the bid and the ask. You can earn the spread by buying on the bid and selling on the ask.

I didnt understand that at first because I trade CFD.

Can you only do this if you have capital to front rather than trading on margin and DMA?

MrGecko · May 1, 2009, 2:06pm

Basically, futures markets are made up of price makers and price takers.

Price makers are making quotes to the market - how much they will buy, and at what size, and similarly for selling. Of course, you need someone else to be on the end of your quote for a deal to be done - the price takers.

Now, making a quote does not necessarily mean you will get "filled" (i.e. someone agrees to deal with you); this is the skill in this type of trading.

So, there are price takers, who will just go to market and buy / sell at the best price is available (or vice versa). Then there are price makers, who will quote bids and offers into the market.

As a gross generalisation, price takers are either speculating in the longer term, or are using the contract as some sort of hedge; i.e. they are not bothered about paying a tick or two on their fill, they just want the position. So the objective of a price maker is to quote bids and offers to the market, and do so at the widest possible spread that will get filled.

It is not explained very well but thats the idea anyway.

May 1, 2009, 1:46pm	#51
Technically Fundamental Banned Member Since May 2008 2,831 Posts	Re: prop firm traders... groomed lol. wtf is earning the spread. You need to explain this stuff without trader jargon 1st.

May 1, 2009, 1:49pm	#52
MrGecko Banned Member Since Nov 2007 2,822 Posts	Re: prop firm traders... the spread is the difference between the bid and the ask. You can earn the spread by buying on the bid and selling on the ask.

May 1, 2009, 1:56pm	#54
KillPhil08 Banned Member Since Apr 2008 1,867 Posts	Re: prop firm traders... omg

May 1, 2009, 2:06pm	#56
MrGecko Banned Member Since Nov 2007 2,822 Posts	Re: prop firm traders... Basically, futures markets are made up of price makers and price takers. Price makers are making quotes to the market - how much they will buy, and at what size, and similarly for selling. Of course, you need someone else to be on the end of your quote for a deal to be done - the price takers. Now, making a quote does not necessarily mean you will get "filled" (i.e. someone agrees to deal with you); this is the skill in this type of trading. So, there are price takers, who will just go to market and buy / sell at the best price is available (or vice versa). Then there are price makers, who will quote bids and offers into the market. As a gross generalisation, price takers are either speculating in the longer term, or are using the contract as some sort of hedge; i.e. they are not bothered about paying a tick or two on their fill, they just want the position. So the objective of a price maker is to quote bids and offers to the market, and do so at the widest possible spread that will get filled. It is not explained very well but thats the idea anyway.

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Any Prop firm to recommend	alientrade	Trading Firms	2	Dec 13, 2010 7:37am
looking for forex prop firm	koffiEugene	First Steps	0	Feb 28, 2009 11:48pm
Trade for myself or for a prop firm?	jwork101	Home Trader	1	Nov 22, 2008 10:48pm
How can you start on oil at a prop firm???	spanish89	Home Trader	14	Jun 7, 2008 4:10pm
Commodity Prop firm ?	Nikk	Commodities	7	Jan 26, 2005 5:13pm