Sacrophage wrote:v8power wrote:Sacrophage wrote:
As an ECP, you can open UK accounts while residing in the US. Already told you this! There is no mystery! Have you called Citi yet? Called your lawyer(s) yet to set up an LLC with ECP status to minimize risk? You better not move into my guest house
I rememeber the convo, bit I think I missed that part. I have them looking into the LLC. Havent called Citi cuz Im curious about something, so I ll ask. Is trading directly with a bank still like trading with a retail broker? Is there still leverage offered? I guess when you mentioned dealing with them my mind went to that, that is for the big boys moving tens to hundreds of millions of dollars per trade. Forget the guest house, Im just sleeping in the garage with all those sexy cars of yours.
Individual ECP threshold is 10M net worth. Corporate ECP is 1M in capital. Everything else is limiting your risk, costs, and taxes. Yes, Citi has levels - velocity group is first level, very similar to retail experience. The bigger you go, the more negotiable everything becomes - leverage included, but liquidity is the limiting factor before leverage (maybe not in your case because you are crazy, LOL). You negotiate liquidity as $/sec. Providing vs taking liquidity is also important. The more providing you do (limit orders), the better terms you can get. Just talk to them - this isn't secret info. The only unconventional thing I do recommend is a custodial acct with your prime broker - explained at beginning of thread. Most people don't have it, it is something you can do later on after you're larger as well.
Haha me crazy . Thanks for the info. liquidity is the topic the interest me the most at the moment. Having very lttle trading expierence, all I know is how the market reacts and accepts orders up to a certain size. And even that is sketchy at best guess. I feel like one day Im just gonna have to start throwing out 100 lot orders and see what it does to the market (just kidding, kind of). Forex's claim to fame is that its trillions of dollars and no one person can manipulate it, so I cant imangine that a small trader of my size would even be a blip on the chart. But I have found at least retail wise 100 lots is kind of like the don't cross this size amount (if that makes sense). It would be nice if forex had the same info as stocks and futures such a volume and liquidity numbers. Cuz Im sure liquidity is vastly different between EU and U/Zar.
Also Im curious and you don't have to answer is how your bots work around this problem. I know you sell/lease (something) them to banks. Which Im assuming they are moving pretty large size trades. With my little bit that I understand about high freq trading is that your placing trades that only last seconds or less and that you take advantage of price somehow. At least that's what I remember reading one time. So Im curious how they work around this. I do realize I could be completely talking out my ass right now and be completely wrong.
Once again thanks for your time and advice.