prop firm traders...

[Technically Fundamental]

Im applying for trainee position this weekend... wish me luck bustards

 

[arabianights]

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

 

[Technically Fundamental]

I dont even know what earn the spread means.

Maybe I should just forget applying for now lol.

 

[Technically Fundamental]

I'm citing you and Trader Dante as my mentors. under your real names obviously. Net tutors. I've been paying you £500 a month.

 

[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?

 

[arabianights]

Prop house, not futex though. But Mr. Malins is still welcome to cite me as a mentor, I'm sure they'll be impressed with the good work I've done in shaping him.

 

[rawrschach]

where are you applying

 

[MrGecko]

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

 

[elitejets]

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

Said the Gecko wearing a bikini ..

 

[fat chance]

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]

groomed lol.

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

 

[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.

 

[Technically Fundamental]

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]

omg

 

[Technically Fundamental]

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]

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.

 

[MrGecko]

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?

Nope, any old idiot can do it. The exchange has specified margins per contract which you have to meet, but other than that it's open for all.

 

[Technically Fundamental]

I thought bids were made on the floors :-S

F-it anyway CFD is fine for someone in my position.

What kind of account do you need to put in bids.

 

[Technically Fundamental]

omg

what?

 

[MrGecko]

I thought bids were made on the floors :-S

F-it anyway CFD is fine for someone in my position.

What kind of account do you need to put in bids.

Most of the activity is electronic.