|
PureBytes Links
Trading Reference Links
|
> > there was a previous discussion here about funding and size /
> > capaitalization of brokerage companies - TOP 40 or so in FUTURES mag.
> >
> > In dealing with smaller companies (i.e. not in top 40) I do believe
> > in putting MOST of the funds into TBILLs - which can be used as
> > margin anyway - will make them safe and in case of bankruptcy will
> > be segregated and might be blocked for months, but better blocked
> > than down the drain..........
> >
> > Is this right ?
> > Does that help me in case something goes wrong ?
> > or better, different method, please ?
> >
> > thanks
> > rgds hans
>
> Hans,
>
> It really should not make any difference. The Customer funds are
> segregated, ie there is a firewall between them and the companies
> capital. There are a bunch of early warning alarms set off if the
> companies capital should begin to slip.
>
> If a firm gets tight on capital, you will see them start sending out
> account balances (which Stotler did) or they immediately cut a deal
> to transfer the accounts to a healthy FCM.
>
> KJL
thanks KEVIN - but a remember DREXEL where a friend had an account
with $500k+ and got near nothing back - is that a different story ?
rgds hans
~~~~~
....and bear in mind
that high reward does not come without its partner high risk !
|