PPRuNe Forums - View Single Post - Independent Financial Adviser
View Single Post
Old 4th Jun 2010, 13:58
  #106 (permalink)  
FlexibleResponse
 
Join Date: May 2002
Location: GC Paradise
Posts: 1,102
Likes: 0
Received 4 Likes on 3 Posts
but that they have skin in the game themselves
No, they have NO skin in the game. They are gambling with your skin in the game.

With the next client they have to you, they have done the opposite trade with his skin as a hedge...that way they can't lose...

...if they lose with your trade they win with his...if they lose with his trade they win with yours.

Notice that their "loss" cannot be a negative figure to them...that they always get paid their management fee and with every second client they get paid a bonus?

Are you paying attention..?
FlexibleResponse is offline