Best firm for leverage

Sounds like you are describing haircut fee here. Don't know that it's an SEC thing, since it's a negotiable charge at some firms.

I trade with Assent and my main strategy involves holding trades for up to two months. I am hedged for the most part (longs vs. shorts) but do get 'lopsided' by a few hundred grand at times. The leverage the firm extends to you will depend greatly on your style of trading and how much they can trust you with their money. I am leveraged well beyond 30x most of the time, and get full credit for short positions, which means I pay no interest charges if I'm fully hedged. I'm very happy with them since my deal suits my style of trading very well.

Quote from howellpar:

Don't forget the interest charges on your 'holdings' - the SEC charges about .5%/month on ALL holdings that is charged to your account the last day of the month.

Also, the Brights hit you for an amount less than the SEC's based on multiple factors but still a cost item even though they are quite fair in their charges and calculations.
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The SEC fee is charged by, and paid to, the SEC directly from the account by SLK/GS.

The Bright's 'charge' is the haircut and the scenario I described is their 'most expensive'. Again, my charges are significantly less and it is based on experience, style, risk factors and other details.
 
I'm not following you here. Are you saying the SEC charges 1/2% of the leveraged amount of your holdings at month end? Or did you mean plain old SEC fees on the dollar value of every share sold? Where did you get the info on the 1/2% a month amount?

Thanks

Quote from howellpar:

The SEC fee is charged by, and paid to, the SEC directly from the account by SLK/GS.

The Bright's 'charge' is the haircut and the scenario I described is their 'most expensive'. Again, my charges are significantly less and it is based on experience, style, risk factors and other details.
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It's an 'approximate' - they 'net' the diff. b/w shorts/longs and appear to charge about 1/2% of the average daily balance on the last trading day of the month.

I'm only going on what is 'labeled' on my P/L as prepared by SLK/GS for Bright.
 
As a partner in a professional firm, I have access to whatever leverage I need to trade my strategies. Some firms may cap that at a certain % of capital, others may be more liberal. To be honest, I don't even know what my real limit is. I just take trades as I see them, and there's always enough money available to me. Of course there is a point at which I'd be going overboard and I'm sure I'd get a quick phone call if I got to that point.

But my office managers know me and my style and they are comfortable with how I trade and manage my use of leverage. As Don Bright says, it's "use and not abuse", and I agreed. You need to talk to the management of some firms and explain to them what you do and back it up with numbers. Trader's individual deals run across a wide spectrum.

Quote from heelsfan23:

Could you provide more detail on Assent... for starters, how were you able to obtain 30X leverage?
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Gotcha. I'm pretty sure that's a Bright or SLK charge, and not a mandated SEC one. I pay an interest charge based on my net leveraged long or short exposure over the month, but it's considerably less than that.

Quote from howellpar:

It's an 'approximate' - they 'net' the diff. b/w shorts/longs and appear to charge about 1/2% of the average daily balance on the last trading day of the month.

I'm only going on what is 'labeled' on my P/L as prepared by SLK/GS for Bright.
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Sitting in JFK airport, checking out the free "hot spot" for wireless computer networks at Jet Blue...pretty cool.

Thanks to those outlining our capital usage policies....but since everyone is treated differently based on longevity, trading style and techniques, etc. ,....it might make sense to anyone who is serious about needing to use significant money to simply call Bob or I.

I was happy to help out a NYC team of traders who were in the process of raising an additional couple of million, as a "hedge fund"...and give up 80% or so....we suggested that they simply use our capital, and keep all their profits. Yes, of course we charge a capital usage fee. It runs from zero for 6 times your equity (hedged) to a maximum of 1%/month (for above 75 times your equity for example.. for naked extremely risky positions....but no matter how you slice it, it is still much better than borrowing money and having some "investor type" looking over your shoulders all the time.

Bob just added : most never pay over the 6% per annum rate...

We have those who use 100+ times capital at times, with a plan and a track record. We are in the fortunate position to have considerable capital that we simply cannot use.

Feel free to call. 800.249.7488

Don
 
how does bright manage to manage all the risk

of all their traders .... without blowups?

must be cash coyne who burns the midnight oil to make sure

the bright family can sleep at night?
 
Quote from SethArb:

how does bright manage to manage all the risk

of all their traders .... without blowups?

must be cash coyne who burns the midnight oil to make sure

the bright family can sleep at night?
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Naawww... No midnight oil for me. i can take care of what I need to in the normal working day. I'm pretty much done with my day by 9pm... 9am-9pm for me... Don't often work much more than a 1/2 day :D
 
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