Can I trade stocks without any broker ? How much money I need to open my own clearing firm ?

DevBru said:
As i have said again and again, when trading for a broker with 4:1 margin, you only need to have the margin requirement since the broker is providing the rest of the capital as a loan ...

If you have 1000$, 4:1 margin and you purchase $4000 of stock, you put up your own $1000 deposit and you are $3000 in debt to your broker. You provide $1000, the broker provides $3000. You provide 25%, the broker 75%.

Who is going to give you that loan if you are your own broker ...
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No, the broker provides zero! It's just a book value. That's the whole trick in this.
 
thecoder said:
No, the broker provides zero! It's just a book value. That's the whole trick in this.
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It seems like you don't understand margin ...

Literally the first sentence on investopedia:

What is Margin?
Margin is the money borrowed from a brokerage firm to purchase an investment.
 
DevBru said:
It seems like you don't understand margin ...

Literally the first sentence on investopedia:

What is Margin?
Margin is the money borrowed from a brokerage firm to purchase an investment.
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But we are talking of the brokerage firm itself! And not of its client!...
 
Here, try this example for a bank or broker:
http://www.eurexwbt.de/index.php/en...in-the-daily-offsetting-of-profits-and-losses
Assume, you have EUR 120,000. You could buy shares with that or enter into ten DAX futures positions, for which you would have to pledge a margin of EUR 12,000 (Margin requirement for this example) per contract. The ten contracts, however, would correspond to a DAX equity portfolio of EUR 1,575,000 (10 x DAX-Future contract price 6,000 x EUR 25 index multiplier)
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Got it, finally? :-)
 
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