# Entity: Cosmopolitan Bucket Shop
## Definition
A trading venue characterized as the richest bucket shop in New England, offering extensive trading options including stocks, commodities, and more. It served as a last resort for traders and implemented strict margin and premium requirements that affected trading capacity.
## Category
market
## Context
The Cosmopolitan bucket shop imposed a three-point margin and a premium on trades, limiting the trading capacity of its customers. It was notable for its comprehensive quotation board and handling of various instruments across multiple exchanges.
## Source Evidence
"It was the richest bucket shop in New England... they put no limit on a trade... it had thousands of patrons and I really think I was the only man they were afraid of."

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# Entity: Trading Premium
## Definition
An additional cost imposed by a broker or trading venue that increases the entry price of a security, effectively raising the breakeven point for the trader and diminishing potential profits.
## Category
error
## Context
The requirement of a premium added to the price a trader paid for a stock exaggerated the losses even when the stock increased in value.
## Source Evidence
"It meant that if the price was 90 when I bought... instead of making my ticket: ' Bot Steel at 90⅛ ,' it read: ' Bot Steel at 91⅛ .'"

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# Entity: Margin Requirement
## Definition
A prerequisite where traders must deposit a certain percentage of the total trade value, reducing their capacity to trade by limiting the amount they can leverage on their balances.
## Category
error
## Context
The requirement of a three-point margin significantly reduced the trader's ability to maintain positions and limited the size of trades he could execute.
## Source Evidence
"they reduced my trading capacity by two-thirds."