Heres a very common solution offered to folks who call up large trading banks and say what you do.
Bank: OK, we believe everything you say. Now, why dont you prove it and deposit the US$ 10.0 million, 20 etc that you want to use as margin and we'll sign this offset form so if you lose we dont lose.
Pretend client: How much leverage will you give me?
Bank: Make the deposit and we'll talk. If you dont like our deal, we'll wire the money back out the same day.
Pretend client: Oh, ahh, well, its all invested in super-secret things, I cant disclose, I'll call you back. <click>
Banks have seen this game for decades and dont really care. Real customers show up, make deposits and agree to terms which are in the banks favor. If you deposit, say 1 million at 100:1 margin, you want to trade 50-100 bucks on a qoute right? Never leave orders and simply act as a pickpocket to the banks P&L - until you blow up, then its the bank's fault. The bank isnt an ATM for you and will let you know quickly. I think you'll find as your deposit increases, your leverage decreases,eg, a $10million depo will not allow you trade 500 bucks on a qoute.
Another solution is to simply use a non-delivery account where your deposit, is your cushion against losses and if you wind down to 1mill from 10, the bank stops you out on all your positions.
But if you want to be treated as a bonafide bank, set one up, invest in staff, equipment etc and be prepared to offer liquidity to other banks. So when JPM calls you and asks for cable in 20, be prepared to qoute them, know they're probably asking 20 other banks and probably have an order so, execution is more important than price. You prepared to do that?
But probably the best thing you could do for yourself, is go buy Marcia Stigum's book "The Money Market" and you will have a resource for years to come. (And not ask endless questions here.)
