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

SunTrader said:
Amun Ra gave a hedged trade scenario. Not straight up 6x cash buying power in the account.

Also that one billlllion dollars would most likely be in T-bills which plays a part in how things play out as well.
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Amun Ra posted this initially:
Amun Ra said:
Its more. I knew a guy that had $100m in an account and they gave him 6x on his account.
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Apparently he added a lot later on based on the reactions he received. Which only confirms that the reactions were correct. It was NOT a hedged scenario at the start. At the start it was straight up 6x cash buying power in the account.
 
virtusa said:
Amun Ra posted this initially:


Apparently he added a lot later on based on the reactions he received. Which only confirms that the reactions were correct. It was NOT a hedged scenario at the start. At the start it was straight up 6x cash buying power in the account.
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Still it was all there in his initial post.
 
Tradex said:
If the client has an edge (long and short positions at the same time) then the account cannot go to zero, by definition, regardless of price action, yes?

By the way, most high net worth individuals will put their trading account balance in T-bills or other interest-producing financial instruments, of course, but that does not change the facts.
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Stop being an asshole. You were the one who said "whos going to pay the $500m loan back if the market goes against him?" I'm telling you that the market would have to go to zero for him to owe $500m. If you wanted to argue about how much he would lose once his $100m of equity was declining, then you should've talked about that.

FFS
 
Tradex said:
I stopped reading after this sentence, I have zero tolerance for vulgarity and rude behavior.
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If you don't want people to call you names, don't set up a scenario where you claim someone can lose $500m, then when someone gives you a logical response, you come back telling them they're wrong because they can never lose $500m. When someone is trying to give you an honest answer, don't act like a jerk.
 
virtusa said:
With a 30% drop they [the bank] will already lose 80 million.

View attachment 237017
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Your table does not show it but a 83% drawdown will make them lose half a Bil, if we follow your calculations.

Citigroup (NYSE:C), to give just one example from the stock market, lost more than that in 2008-2009 (and never recovered since then).
 
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Tradex said:
Your table does not show it but a 83% drawdown will make them lose half a Bil, if we follow your calculations.

Citigroup (NYSE:C), to give just one example from the stock market, lost more than that in 2008-2009 (and never recovered since then).
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Don't remind me. I still have shares, waiting patiently for them to go back up. :banghead:
 
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