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It sounds so amateur hour. Amateur hour? The traders could be monkeys, since it's only the salesman who matter. When you bet other people's money, the strate
by mynameishere 12y ago
It sounds so amateur hour.
Amateur hour? The traders could be monkeys, since it's only the salesman who matter.
When you bet other people's money, the strategy is fairly simple: Go long (or short). Somebody at another company goes short (or long). One wins, one loses (it's guaranteed) and the winner gets a percentage of the "win". This is why they love volatility so much, as it determines the size of the profits, even in a zero-sum game.
Sure, mathematicians can beat the house. Doesn't matter to these guys. Other people's money? Flip a coin.
- consz 12y agoProp shops don't have salesmen (at least, none that I've ever seen).
- lmartel 12y agoProp stands for "proprietary," it means that they trade their own money.
- harmegido 12y agoCorrection: it means they trade private money. This could be their own money, but more often than not, it's the owner's/partner's money.
- mlrtime 12y agoThe exact definition of proprietary trading is trading with the firm's own money. Public/private is an entirely different dimension. There are no sales reps with prop trading, it isn't an agency. http://en.wikipedia.org/wiki/Proprietary_trading http://en.wikipedia.org/wiki/Proprietary_trading