PM me with exactly what you're looking to do. To act as a Prime Broker is akin to giving your credit card with an unlimited credit line to someone else, not sure if that's what you mean. I'll check messages in a few minutes.
Don
Don
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20:1 leverage on stocks possible?
- Thread starter corgi
- Start date
We offer competitive leverage and rates with the choice of trading platforms: Genesis Laser, Sterling Trader Pro, and Lightspeed. Please feel free to call us at 1.866.901.3223 or visit our website at www.jctradinggroup.com for more information. Thanks, Jeff
Quote from corgi:
Hi,
I wonder if there is any brokers that would let me trade stocks with comparable leverage as trading futures (ie. 20:1 as in a 5% deposite margin in future contracts).
I've looked into portfolio margining but it seems to me 20:1 is not quite possible. Or is it? Is prop the only way to go?
Many thanks!
Corgi
I called assent recently and they directed me to a few llc's that are reputable.
as i see it, a prop/llc gives you 20-1 leverage or higher with putting up a small deposit which works very well for traders. the downside is your money is'nt protected by sipc so its important to do your own dd when choosing a firm. keep in mind the llc really is'nt doing us that great a favor by giving us more leverage as we are at risk of losing our money if the firm goes under. so why else would anyone go to an llc where their money is'nt 100% safe. its because of the higher leverage and lower minimum,but mainly the lower minimum. if a retail firm gave us 20-1 with 3k ,the llc would be out of business.
as i see it, a prop/llc gives you 20-1 leverage or higher with putting up a small deposit which works very well for traders. the downside is your money is'nt protected by sipc so its important to do your own dd when choosing a firm. keep in mind the llc really is'nt doing us that great a favor by giving us more leverage as we are at risk of losing our money if the firm goes under. so why else would anyone go to an llc where their money is'nt 100% safe. its because of the higher leverage and lower minimum,but mainly the lower minimum. if a retail firm gave us 20-1 with 3k ,the llc would be out of business.
Quote from NY_HOOD:
I called assent recently and they directed me to a few llc's that are reputable.
as i see it, a prop/llc gives you 20-1 leverage or higher with putting up a small deposit which works very well for traders. the downside is your money is'nt protected by sipc so its important to do your own dd when choosing a firm. keep in mind the llc really is'nt doing us that great a favor by giving us more leverage as we are at risk of losing our money if the firm goes under. so why else would anyone go to an llc where their money is'nt 100% safe. its because of the higher leverage and lower minimum,but mainly the lower minimum. if a retail firm gave us 20-1 with 3k ,the llc would be out of business.
20:1 leverage is way too high. About 7:1 leverage is the highest you should go, before the Risk-Reward leads you into Risk of Ruin.
Personally, I prefer futures trading (eminis). The segregated funds aspect lets me sleep at night. I don't worry about an LLC or broker going the way of Refco. Look at how badly some forex brokers are doing; LLCs can do the same...
if you do your homework on the llc firm you join, then knowing your money is safe is not a issue. you keep up as little as necessary risk capital & sweep you account weekly, ( paycheck) then its a non issue imo.. anything can go wrong with even the most well capitalized firms out their, that should be the last concern after you done your dd . more focus should be on using leverage correctly to trade profitably.. the market losses are the biggest risk a trader faces. . anything can go wrong, so you just do your best, the llc structure gets a bad rap because of a few greedy people, like in every industry, no different.. its a matter of choosing the right business partner thru dd as always..
quote from rcanfiel
20:1 leverage is way too high. About 7:1 leverage is the highest you should go
The 20:1 should be the minimum amount required.
With $5k down at a beginner firm only gives trader $100k. With $50k down at a quality firm gives trader a mill. and then trader can earn a good living IF he's an "elitetrader".
True prop firms that back traders split profits because they offer net directional, non hedged portfolio trading. they share risk and share profits accordingly. I am familiar with places offering trading books to $20MM net long positions.
your firm is pairs trading and Limit on Open strategies where the "capital" allocation is rarely maxed and strategies have capped risk.
Perhaps you'd like to define the apple and the orange before comparing the two.
your firm is pairs trading and Limit on Open strategies where the "capital" allocation is rarely maxed and strategies have capped risk.
Perhaps you'd like to define the apple and the orange before comparing the two.
Quote from Don Bright:
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
No need for huge margin, too risky, unless you have been in the game for a long time. One bad trade, or a trade the gets loose on you and your wiped.
Traders looking for that kind of margin are gambling, unless they have long proven track records and are good money managers.
And one does not need a ton of money in the beginning. It's best traders don't constantly rely on more money to make a living, or to grow their asset base, it becomes an addiction.
I say if your putting up only 5 kand want to trade 100! Then your crazy, you haven't assesed the downside risk. If your account is only 5 k, then you have no business trading 100 k, maybe 20.
And one can make money with that, all be it slow, but slow and steady money is better for the psyche and confidence level. With 20 k, a guy can make 100 to 500 a day easy! If not, then going to 100 for get it.
Traders looking for that kind of margin are gambling, unless they have long proven track records and are good money managers.
And one does not need a ton of money in the beginning. It's best traders don't constantly rely on more money to make a living, or to grow their asset base, it becomes an addiction.
I say if your putting up only 5 kand want to trade 100! Then your crazy, you haven't assesed the downside risk. If your account is only 5 k, then you have no business trading 100 k, maybe 20.
And one can make money with that, all be it slow, but slow and steady money is better for the psyche and confidence level. With 20 k, a guy can make 100 to 500 a day easy! If not, then going to 100 for get it.