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How do we create liquidity?



While we no longer rely on failed evaluations for liquidity, some may question how we can onboard numerous traders with sizeable account sizes. While our primary liquidity comes from our "A" book structure, we also utilize additional methods to support a larger trading roster. Alongside the "A" book model, we engage private investors through our subsidiary investment fund. In cases where capital is insufficient for a trading contract, we ether ask the trader to take a few month break from their funded account while we stabilize our accounts, or we may leverage loaned capital from private lenders and financial institutions, using real estate as collateral, or guarantors to secure the debt for a trader; taking on full liability to sustain a contract. It is important to note that this approach entails liability for our company, directors, and guarantors; allowing traders to pursue their trading endeavours without assuming the risk. We also generate liquidity by sometimes by retaining PAMM deposits from evaluation-phase traders. These funds get copy traded from our top traders, yielding a significant annual gain with its adjusted maximum risk settings in place. Collectively speaking, this avenue generates large sums of capital with enough traders participating in the evaluation phase. Nobody has to lose in order for it to work. If anything, having it fail would be just as bad for the firm (if not worse), then for the traders. This is another way our prop firm relies on its traders to generate liquidity.

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