Can Refco cleared props offer greater size?

[jtrend]

A friend of mine said last night that prop shops that are cleared by Refco (ie league, futex, market focus etc.) can let you trade more size than someone like Atlas futures who are not cleared by them. Is my friend right?

Am I right in thinking that this wouldn't matter in the early part of your career?

Many thanks

 

[eldrechr]

He is correct but so are you.

No point trading size until you are ready for it physcologically. With the big size comes huge down days. Is this something you can bounce back from? Losing the equivalent of a house in 30 seconds takes a lot out of you emotionally. You need to be sure that you go somewhere with a good track record, and managers who will step up your trading as and when you are ready.

A friend of mine said last night that prop shops that are cleared by Refco (ie league, futex, market focus etc.) can let you trade more size than someone like Atlas futures who are not cleared by them. Is my friend right?

Am I right in thinking that this wouldn't matter in the early part of your career?

Many thanks

 

[Eldgo]

Eldrchr,

Why is this the case (Refco can do more size)?

 

[TWI]

If a prop shop or arcade has an umbrella account with a clearing company whether it be Refco or anybody else the position limits are determined by the comapany not the clearer. The only issue for the company with the clearer is if they go into an oernight margin call. Certainly you will get far bigger size with the arcades than you ever would if you opened an account as an individual.

 

[eldrechr]

Refco is the only arcade i have known to be quite happy about traders running positions for quite some time. It is all about balance sheet. Most of the other arcades have a seperate clearer, whereas Refco are also a cleaer, therefore they cut out the middle man and result is past on to the traders.

 

[TWI]

Think this is pretty much what they are all trying to do now.
the traders clearing alliance is doing a similar thing but they are absolute cost pricing everything and as a result the trader gets the best deal.

 

[Directional]

yes, I heard the Clearing Alliance is able to undercut pretty much everyone by absolutely miles simply because no-one else is prepared to clear trades at cost.

 

[red army]

yes, I heard the Clearing Alliance is able to undercut pretty much everyone by absolutely miles simply because no-one else is prepared to clear trades at cost.

you r right, i'm there at the moment and the setup is good......and the costs are great!!!!!