its not prop, its getting additonal leverage period.. (buying power). not a big deal, their are many firms that will offer what your looking for, you just have to find one that meets your needs & you feel comfortable with. usually a minium of 5 k is required as a deposit, depending on your needs, everything is neg in this business. do your homework & you should find a fit.. IF you say what kind of deal your looking for then maybe someone can offer some options on here to help you?
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
20:1 leverage on stocks possible?
- Thread starter corgi
- Start date
Just wanted to make a comment about, what seems to be, an ongoing discussion, with some confusion, about "putting money up" to run your business vs. being hired and splitting profits.
I think a great number of my traders have taken out all the money they have put up, thus simply leaving funds in accounts just like the "true prop" firms require (for the most part). And, in my mind, it makes little sense to split your profits for a lifetime in lieu of putting in some money that you can immediately take out when profitable (no 12 month waiting period).
Just a comment,
Don
I think a great number of my traders have taken out all the money they have put up, thus simply leaving funds in accounts just like the "true prop" firms require (for the most part). And, in my mind, it makes little sense to split your profits for a lifetime in lieu of putting in some money that you can immediately take out when profitable (no 12 month waiting period).
Just a comment,
Don
Quote from scorpion:
its not prop, its getting additonal leverage period.. (buying power). not a big deal, their are many firms that will offer what your looking for, you just have to find one that meets your needs & you feel comfortable with. usually a minium of 5 k is required as a deposit, depending on your needs, everything is neg in this business. do your homework & you should find a fit.. IF you say what kind of deal your looking for then maybe someone can offer some options on here to help you?
It never occured to me that I can actually negotiate for higher leverage. I thought it's all cast in stone (you know reg T ...etc). I use IB for my futures trading and it seems they're not the negotiable type and I never thought there are firms out there would do do extra leverage.
Thanks Scorpion I will do some research on that. All I need is about 20:1 leverage, if I can get that with a retail broker that will solve all my problems definitely.
For 20 to 1 leverage you have to go prop (Assent, Bright, Echo, Vtrader) you cannot get it at retail. Even with portfolio margin the most retail can give you is 6.6 to 1. As has been said call the firms and find the best fit for you, and make sure you ask about comms, long and short interest, capital interest charges, monthly charges, rebates, lock up for your capital, etc. Everything is negotiable, and make sure it is in writing. Understand that there is no insurance on prop accounts like retail so it is possible to lose your money, but it is very unlikely with any of the big prop firms.
every deal is structured differently, pure retail is 4-1 intraday, another option it to join a trading firm usually a llc that offers extended leverage . how a traders risk capital is protected is a matter of the agreement they sign, its a 2 way street, not the same everywhere.. dealing with a financially stable co is a priority & your written agreement can offer peace of mind where your money is held.. to have your money safe period..
Quote from opt789:
For 20 to 1 leverage you have to go prop (Assent, Bright, Echo, Vtrader) you cannot get it at retail. Even with portfolio margin the most retail can give you is 6.6 to 1. As has been said call the firms and find the best fit for you, and make sure you ask about comms, long and short interest, capital interest charges, monthly charges, rebates, lock up for your capital, etc. Everything is negotiable, and make sure it is in writing. Understand that there is no insurance on prop accounts like retail so it is possible to lose your money, but it is very unlikely with any of the big prop firms.
Excellent advice!
Don
you could lose your money trading as well, point being do your dd no matter what business relationship or structure that you enter into. their are different choices out their, its not all the same from my experience. its not all about a 10 page llc agreement , one sided usually, not ours.. a traders agreement is custom to the parties needs period. it can be a simple one page agreement , its all about mutual trust, 2 way street. imo..
opt789,
Thanks for your advice. I guess as a retail trader 20:1 leverage is not available. At least would need to setup some sort of deal with a fund or firm and trade under their prime account as suggested by Scorpion.
Don,
If a guy walk up to to you and say he wants to use your firm as a sort of "prime brokerage", does he make any sense or he really doesn't know what prop trading is all about. (OK, "the guy" is me...)
Thanks for your advice. I guess as a retail trader 20:1 leverage is not available. At least would need to setup some sort of deal with a fund or firm and trade under their prime account as suggested by Scorpion.
Don,
If a guy walk up to to you and say he wants to use your firm as a sort of "prime brokerage", does he make any sense or he really doesn't know what prop trading is all about. (OK, "the guy" is me...)