Arcades - sanity check please

TWI

Senior member
2,536 254
I am on holiday in US but it started to rain this afternoon and so I decided to take a look at the latest b/s going on on this thread.

First Wisestguy.

make up your mind , or rather drop the convenience of blowing with the wind .
that is the trouble with your type , very difficult to believe you , since you story seems to change to suit the hype.

You are starting to sound like George Bush, stop it now before it is too late.

if you really believed you were good, I doubt my claiming you had a letter from " some dodgy SB firm " would have bothered you, after all, most people know who finspreads are, but instead you spat your dummy out. I conclude from this that you actually have very little confidence in your ability or yourself.

I learnt a new and funny acronym from some of the military guys here today. IBM. It stands for "Incredible Bull****#ing Man".
 

Beach Runner

Active member
128 2
and what is wrong with that?

Er... nothing. Just a feeble attempt at wit! Or so I thought, but I'm thinking of a quick break in January now - possibly Guantanamo (spelling?). It'll be warm and different.

Enjoy your hols.
 

mikeyk

Member
97 0
Alright fellas,

Just thought i'd add my two cents. I've just started at a london prop firm where we were told from day one that we are just liquidity providers/market makers. The whole idea is to cover your costs through trading and make your money from your liquidity provider rebates. As twalker states you can indeed make some very good money from this. Apparently at my place there is a couple of people making over a million a year from rebates alone!

That said the liquidity provision model isn't right for everyone and already a few have left as they want to trade out rights or trade there personal style.
 

Arcadian

Junior member
18 0
mikeyk said:
That said the liquidity provision model isn't right for everyone and already a few have left as they want to trade out rights or trade there personal style.

Did they stay with the same arcade, just playing a different game, or did they go elsewhere?
 

mikeyk

Member
97 0
Alright Arcadian,

I'm not sure to be honest, they're not still at the firm. I think another factor is that they didn't have the motivation or patience for spreads. The two that left seemed to want more "excitement" although i know one had already blown an account somewhere else previously trading bunds.

Our company wont allow at trader to trade anything but spreads unless they are backing themselves.
 

binsley

Junior member
39 0
Bottom Line for whether you find the right arcade or not - COSTS!!

So when they tell you they make nothing out of the commissions (" we just pass our costs on to you") and the only thing they're interested in is the profit share. " you make money, we make money" - put them on the spot. Know what real competitive rates are and then you can demand that and nothing worse. I only know industry standards for equities eg uk 0.5 - 1 basis point no more. most european cash - no more than 1 bp us stock no more than 0.5c a share. Not sure on futures but guessing at 0.60c a pop - maybe someone else can clarify some other competitive rates. There are enough of these prop shops out there for you to find one that suits and for me the no 1 priority is a competitive cost structure. So maybe its a good idea for us to list those firms offering the best rates (i hear STA offer good rates for futures but don't know enough on futures rates to be honest) - and conversely those firms that are ripping people off !!
 

alpha_monkey

Member
97 5
binsley said:
Bottom Line for whether you find the right arcade or not - COSTS!!

So when they tell you they make nothing out of the commissions (" we just pass our costs on to you") and the only thing they're interested in is the profit share. " you make money, we make money" - put them on the spot. Know what real competitive rates are and then you can demand that and nothing worse. I only know industry standards for equities eg uk 0.5 - 1 basis point no more. most european cash - no more than 1 bp us stock no more than 0.5c a share. Not sure on futures but guessing at 0.60c a pop - maybe someone else can clarify some other competitive rates. There are enough of these prop shops out there for you to find one that suits and for me the no 1 priority is a competitive cost structure. So maybe its a good idea for us to list those firms offering the best rates (i hear STA offer good rates for futures but don't know enough on futures rates to be honest) - and conversely those firms that are ripping people off !!

http://www.trade2win.com/boards/showthread.php?t=11051
 

wisestguy

Well-known member
471 0
actually , by those numbers , I am in the top 5% of traders not the top 20 %. if I am about the only one who makes money whilst everyone else is losing , that's pretty damn good . thanks ;)

and er , what do you in afghanistan care about trading ?
 

Arcadian

Junior member
18 0
Earlier on I said I'd summarise, for the benefit of the archives if nothing else. So here goes:

It looks to me like liquidity provision and scalping are to a career in professional speculative trading what cold calling is to a career as a salesman: Evil but necessary and some people get so good at it that they stick with it while others move on to doing things differently but stay in the industry.

Some arcades are better than others. Those who know don't say :( whatever the reasons may be. So, punter^H^H^H^H^H^Htrader beware!

Is that all, I hear you ask. Actually, yes, I think so - hard information is not easy to come by in threads like this one. PMs are a little better for that but being *P*Ms I can't very well summarise them. (Hint, hint!)

Thanks to all who replied.
 
 
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