Hi everyone,
A silly thought keeps on chasing me recently. A thought about setting up a trading arcade. I would be grateful for clarification of the following:
1. Margin - is it possible to secure a deal with the clearing firm in which they provide a "credit line" for intraday margins up to a certain limit and my company's deposit is only used as a "losses absorber"? Let's say there are 10 sub-accounts with $10,000 in each of them, plus a main account with $50,000. Could each of these sub-accounts be assigned a position size of 20 contracts?
2. Company/trader's account - how to sort it out from a legal point of view - does each trader need to pay his deposit into on of the arcade's sub-accounts? How to give the trader a guarantee that his money will not be simply stolen by the arcade?
Thanks for all your hints
A silly thought keeps on chasing me recently. A thought about setting up a trading arcade. I would be grateful for clarification of the following:
1. Margin - is it possible to secure a deal with the clearing firm in which they provide a "credit line" for intraday margins up to a certain limit and my company's deposit is only used as a "losses absorber"? Let's say there are 10 sub-accounts with $10,000 in each of them, plus a main account with $50,000. Could each of these sub-accounts be assigned a position size of 20 contracts?
2. Company/trader's account - how to sort it out from a legal point of view - does each trader need to pay his deposit into on of the arcade's sub-accounts? How to give the trader a guarantee that his money will not be simply stolen by the arcade?
Thanks for all your hints
