Disliked{quote} The biggest advantage of prop, is black swan protection. In my case living in Germany, prop is almost the only chance for traders. The government officially declared the intention of "destroying the trader profession", so they put a 20K limit to your deductible losses. Meaning, you make 100 K profit, 80 K loss: 20K profit minus tax? Not too bad right? WRONG, only 20 K deductible. For them you made 160K profit, at aprox. 30% tax your tax bill: 48K. So although you made money they ruin you, someone trading options...Ignored
its really bad in germany, anyone told "dont be this first person in court to go against this law, this can take many years and if you lose you need to pay a lot of additional money. better wait until this smaller winners will do a court case".