looking for 1:4 margin w/ $2,000 deposit
- Thread starter dirtybrown
- Start date
Quote from dirtybrown:
I'm aware of http://harmontrading.com/
any others out there thanks [/QUOTe
So you only want $500 bp?
forgive my noobness, what's bp?
omniscient
Guest
buying power. when you use 1:4 margin on $2000, you would have $500 bp. if you used 4:1 margin you would have $8000 bp.
hth
woops, yeah of course I meant 4 to 1, dyslexics are people too
alright, well can you suggest an alternative in this situation?
give me a break, i used that url because I fuond it on THIS site
omniscient
Guest
unless i'm mistaken, nearly all retail brokers offer the same thing, but it is really two separate 'things'.
yes, you can open an account with $2,000.
yes, you can use 4:1 bp for daytrading.
but, the daytrading parameters are not up to each broker. the $25k min req is applied once you have been flagged as a PDT trader. you don't need $25k to open an account or use the 4:1 bp - but to continue daytrading you will need to fund it with the $25k.
so, their statement is true, it just doesn't last long due to the PDT rules.
that's been my understanding and experience anyway. i'm sure others can elaborate further or perhaps counter it with alternative experiences.
hth
take care
omni