If deposit 1 billion, broker give-me 2 billions? There is any absolute limit for margin buy power ?

[Atikon]

Last week I deposited $17 billion and my broker gave me $43.26 billion more, so now I have over $60 billion in margin. I don't even understand how they calculated it.

You know these big corporations always try to fuck the little guy, I bet Bezos got a way higher margin.

 

[Tradex]

You could buy or sell 60,000 ES futures.

So in one hour you think you can add 60 000 ES contracts in the open interest without making any wave in the market, right?

As a reminder, last Friday the difference in the open interest (from previous day) was 3,089 contracts.

 

[Tradex]

As a side note the biggest e-mini futures S&P 500 trade was valued at $1.8 Billion and sent the market soaring in 2016, according to the Wall Street Journal: https://www.wsj.com/articles/unrave...weeks-massive-e-mini-futures-trade-1481560990

 

[ajacobson]

You'd self-clear and deal with a bank offshore. No worries about SIPC or FDIC. You'd use a worldwide custodial bank and depending on product leverage could be anything from 15X. Self-clearing MM can get 20X from OCC in fully hedged option positions. Treasury markets worldwide offer around 20x leverage. Really very product dependent and very dependent on what your bank desk offers as OTC or structured.

 

[virtusa]

Last week I deposited $17 billion and my broker gave me $43.26 billion more, so now I have over $60 billion in margin. I don't even understand how they calculated it.

Where did you find a Monopoly game that has brokerages?

 

[virtusa]

Since this is ET, If I were to presume I would presume it is Zimbabwe Dollars.

No it is Monopoly money. Even Zimbabwe Dollars are beyond the financial limits of ET.

 

[xandman]

It's a different world after your first 5-10 million, Then, it changes again around 100 million.

Keep your head out of the clouds.

 

[Amun Ra]

Or not ?

There is any maximum value for margin buy power ?

Its more. I knew a guy that had $100m in an account and they gave him 6x on his account. I believe it was through Goldman, but this was before Dodd-Frank, so I can't speak to if margin was altered. Also, I believe they gave some rules on that margin like he could only go 3x long and 3x short. So like he could buy $300m of KO and short $300m of PEP to make 6x, but he couldn't go $600m long of KO by itself. A lot of other weird stuff and charges, but I forget them all.

 

[Tradex]

I knew a guy that had $100m in an account and they gave him 6x on his account.

Like for a big bank loan, a broker will never give his customer leverage if his credit report sucks and/or his net worth is small.

If the market suddenly moves against the client , who is going to pay the $500m loan to the broker, in your example?

 

[Amun Ra]

Like for a big bank loan, a broker will never give his customer leverage if his credit report sucks and/or his net worth is small.

If the market suddenly moves against the client , who is going to pay the $500m loan to the broker, in your example?

The market would have to go to zero for that to happen.