Alright. noted.
How can i get this type of leverage ?
- Thread starter MrAgi1
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Lol. very true. Ok, let's say I am referring to liquid currencies or commodities here. However, I get your point. Thanks.
You are quite welcome.
That said, due to its extra high leverage, Forex is still the only game where the trader can turn a very modest capital into a small fortune in no time, if he has a good trading system and a solid money management technique.
So if your backtest is good like you said, the Forex can indeed allow you to multiply your profits quickly.
Just to make my question clear one more time. :
The problem is forex is the only best choice for high leverage. However the edge of my trading system is in options trading(i also use futures spreads sometimes). Almost no options broker offer more than 2:1 leverage on options, however i an here looking for a leverage of at least 50:1 on short options. Thats is why i need to know if there are businesses that allow you to pick any broker that is regulated.Then they open an account by themselves and put in large amounts of money and then they ask the retail client put up a small capital as margin(cushion-loss limit). He now has the ability to enter trade positions(liquid only) so large. but once his losses start mounting up close to the size of his initially deposited margin he is automatically liquidated so he does not lose the business/company’s money. If he makes or does not make profit, the margin lending company collects interests/commissions either way from his deposited margin.
I know it is similar to most prop firm models, well as you know most props are rip offs. Basically interested more in your registration or training fee(and other fees). More annoyingly they want you to trade according to the way they teach you(which you pay for as training fee) and only specific instruments can be traded(usually no options or futures spreads). So i really want to trade my own way/style(not prop shops style).
I hope my question is well explained now.
Thanks.
The problem is forex is the only best choice for high leverage. However the edge of my trading system is in options trading(i also use futures spreads sometimes). Almost no options broker offer more than 2:1 leverage on options, however i an here looking for a leverage of at least 50:1 on short options. Thats is why i need to know if there are businesses that allow you to pick any broker that is regulated.Then they open an account by themselves and put in large amounts of money and then they ask the retail client put up a small capital as margin(cushion-loss limit). He now has the ability to enter trade positions(liquid only) so large. but once his losses start mounting up close to the size of his initially deposited margin he is automatically liquidated so he does not lose the business/company’s money. If he makes or does not make profit, the margin lending company collects interests/commissions either way from his deposited margin.
I know it is similar to most prop firm models, well as you know most props are rip offs. Basically interested more in your registration or training fee(and other fees). More annoyingly they want you to trade according to the way they teach you(which you pay for as training fee) and only specific instruments can be traded(usually no options or futures spreads). So i really want to trade my own way/style(not prop shops style).
I hope my question is well explained now.
Thanks.
Can you please explain more ?
Oh, so you want to write (sell) options (on stocks or indexes I presume)?
This in itself requires some serious margin money, as it exposes you to unlimited risk, unless you put an hedge of some kind. Plus options brokers will need to approve that type of account first. Usually only sophisticated, experienced and well-to-do traders are allowed to sell options, the others can only buy puts or calls.
Do you have some experience as far as selling options is concerned?
1. Thinkorswim is primarily an options platform, and is very good for that. However, it is a shitty platform when it comes to futures and Forex.
2. You aren't going to find the type of leverage you seek with US-based brokerages. You can easily find that type of leverage outside the United States. My instincts tells me brokerages that offer that type of leverage tend to be very seedy, usually located in places such as Russia, Greece or the Caribbean. I could be totally wrong. But that's what my instincts tell me.
There was a time when I briefly considered Forex, and came across this brokerage offering 1000:1 leverage.
https://www.tradersway.com/
I cannot vouch for them, so please proceed with caution.
OP misunderstand how leverage works. Ask this question to yourself : Would I give 50:1 margin to anyone that will only put up 0.5 % of the total value size of an instrument that is all ready leveraged and has a high volatile range. The downside is so big, that it it could whipe out your hole net worth and more. You are looking for someone to take that risk from your hands. No broker that works under strict reglemented rules would do that.
You said you backtested so I assume you have some theoretical paper returns. I'd worry about trading some small size and comparing backtest results to see if it works before I worried about finding leverage.
If the backtest only make it profitable by using leverage not provided, then its not profitable, theirs no edge there. If that type of leverage is required to make it profitable at any scale, theirs just no edge.
With $1000 deposited at AMP you can trade 2 ES contracts. Each ES contract is worth $152862,5. Not sure how that is not enough leverage? A 10 point move and your $1000 are gone.
Last trading session there where multiple 10 point moves within 1 minute time ... Less then 1 minute on the wrong side and your account balance is $0.
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