Do Banks Grant 100:1+ Leverage for HNW Clients?

Quote from 2cents:

they dont... 33:1 for starters (3%), then after a few mths they may try to give u 50:1 but that has to go thru whatever committees who normally have better things to do... note: there is a big push from the banks to weed out 'aggressive' trading... typically characterized by use of high leverage... that said, you may still find a bank willing to give u 100:1... nothing's ever impossible
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Thanks for taking the time.

Are you referring mostly to American banks? A UK bank trader I spoke to claimed many of the bigger European forex banks were completely open to higher leverage 100:1 =>

Also, why is there a push to weed out aggressive traders? Banks don't want to share access to, and profits from, the game?

Or is it another case of big brother knows best?
 
Quote from achilles28: Leverage proportionate to risk was already discussed. By me. So thanks for 'coming down' to my level and telling me what i already know... gay.

Nice. The first sentence was a response to tomcole. The second was to some other posts that implied that an absolute leverage value could be "too much". This is a public conversation among a group, not between you and everyone else individually.
 
RBS, UBS, Deutsche, Man, Fimat... i haven't bothered approaching Citi nor AIG nor any of the other ones cause i found what i was looking for...

aggressive trading does the bank's P&L no good...

aggressive responses does the poster no good btw... just friendly advice ;=)
 
Quote from alanm:


Nice. The first sentence was a response to tomcole. The second was to some other posts that implied that an absolute leverage value could be "too much".
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Fair enough. I misunderstood you. I apologize.

I guess im used to arguing with the trolls in Chit chat. :)
 
Quote from 2cents:


aggressive trading does the bank's P&L no good...

aggressive responses does the poster no good btw... just friendly advice ;=)
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Duly noted ;) I know. I'm a little edgy today. Been chasing my tail on the chit-chat forum a lot lately....

A few more questions. How does high leverage hurt banks unless they're trading against clients? Rhetorical question?

Why can't banks gain by granting higher leverage to traders and laying off risk in the market? I guess its not worth their time or trouble?

Fill me in. :)
 
as long as you dont attempt to use high leverage against the bank's quotes on a gapping pair on news, and your acct doesn't register 50% (negative) P&L swings at short notice, they wont mind... just fyi, even if they provide you with Currenex access, Currenex is monitoring your activity (their SniperPolice TM thing)... hope its clear
 
Quote from achilles28:

Thanks, riskarb.

Does it require any arm twisting or will banks just give the nod if higher leverage is requested?
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I imagine it depends on how much you bring to the table, and how much you leave AT the table.
 
Ok.

I'm a bit confused here - not that I'm trying to instigate conflict. Just trying to clarify:

In 2cents experience, most banks don't offer high leverage (100:1).

According to riskarb and marketsurfer, they do.

I'm not sure who to believe or under what conditions these statements were made.

Maybe some of you can help me out?
 
Quote from achilles28:

Ok.

I'm a bit confused here - not that I'm trying to instigate conflict. Just trying to clarify:

In 2cents experience, most banks don't offer high leverage (100:1).

According to riskarb and marketsurfer, they do.

I'm not sure who to believe or under what conditions these statements were made.

Maybe some of you can help me out?
More...



Any established client of a large wirehouse will receive 100:1. The mention of CME haircut was used to illustrate the point.
 
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