Do prop trading houses justmake money for themselves, or can they act as brokers to members of the public by acting as thier buyers and sellers. Also if not, who does that job. Who are thepeople who for example do the trades for the day trader doinjg his options from home???
arabianights
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Prop trading is making money for the company... Some prop trading houses have brokerages too as part of the group (like mine)... some others are market makers (like MET and Schneider)... and of course banks have prop trading divisions.
Usual answer to your last question is brokers, but not necessarily.
BerkshireBull
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You could always try having a chat with these guys:
BENEDIX - Creating & Developing City Leaders
I have no idea of how reputable they are, but I guess you'd have nothing to lose.
when you say 'prop houses' there is a distinction between a company trading as an entity for it's owners or an arcade like STA or Elite etc. the latter basically provide you with a seat and access to the market for which you pay a fee and % per trade you make. some places will part fund you and take a profit split. true prop houses trade their own capital similar to how a hedge fund would operate.
no-they don't in general. STA does have a broking arm but it's not common. You need a specific broker and certain regulations to sell stuff for a private client. brokers can provide access to the market. there are not many individual options traders to be honest as they're pretty much limited to screen trading with fairly wide spreads. also the pricing models required can get tricky.
no-they don't in general. STA does have a broking arm but it's not common. You need a specific broker and certain regulations to sell stuff for a private client. brokers can provide access to the market. there are not many individual options traders to be honest as they're pretty much limited to screen trading with fairly wide spreads. also the pricing models required can get tricky.
ok that has cleard up some misunderstanding i had. Berkshire Bull i will have a chat with these guys and see what they can offer. I finish my gCSEs in a couple of weeks time, so will have a long time ahead of me. I might have a shot at some of the SII exams? arabianights who do you work for?
DO sprad betting companies have trders working for them just out of interest. Or is spread bettiing nothing like other derivatyives trading??
DO sprad betting companies have trders working for them just out of interest. Or is spread bettiing nothing like other derivatyives trading??
I contacted Benedix, they are happy for me to come along to thier workshop so i might attend thjey gave me a 50% discount so I get to go for £40 so as you say there is nothing to lose. The guy on the phone said it would be a m,assive advantage to go there now, rather than panicking in my last 2 months of uni.
arabianights
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They take the same position as the aggregate of their clients (more or less). So if their clients are long ftse then they will be long ftse.
I can't tell you who I trade for (certainly I was told in very strong terms not to mention them on that radio broadcast, although that might be because they knew what was coming) ... but I work for myself. I'm self employed and on a contract to trade said company's funds and in return get a share of the net profits. This is the standard deal at most "prop firms".
O it was you on that broadcast? very interesting!!! But at prop firms they dont just provice you withthe funds do they? Don't they give you a whole services with acess to analysts and statergies. In an investment bank trading division they all work as teams don't they/
Masquerade
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Perhaps you should study for your exams and worry about this in a few years' time?
rawrschach
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In an IB you'll generally be to told what to trade, when and how. At a prop house you make these decisions yourself, and yes they offer access to bloomberg/reuters etc.
arabianights
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I reckon it's a much better idea to show the interest now to be honest... if nothing else should improve job interview performance for all this stuff to be subconcious.
Thanks arabianights for agreeing, I do think that it is essential to have an aim and not just fall into a job.
How neccesarry is education for this profession? I have my sights set on cambridge, and this is for me i have been told is not unrealistic (I am not showing off).
Would doing a good degree be advantageous in this profession, or is it essentially based around character.
How neccesarry is education for this profession? I have my sights set on cambridge, and this is for me i have been told is not unrealistic (I am not showing off).
Would doing a good degree be advantageous in this profession, or is it essentially based around character.
arabianights
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Good degree is de facto essential for investment bank. Not so important for prop trading house but it will help with getting the job in the first place.
arabianights
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computer science @ cambridge
