Can you recommend a broker with generous margin requirements for ETPs such as the tickers SVIX and SVXY (which often require 100% on long positions due to the risk of sudden and large drops)? I am trading a diversified portfolio which I believe is reasonably well-hedged, and do think some leverage would be beneficial. At Interactive Brokers with portfolio margin, a 100% cash covered position in SVIX is required (although that's occasionally lowered). Are there brokers that will allow leverage on this ticker at 50% or less? I'm not sure how to check the sea of brokers out there.
lowest margin requirements
- Thread starter stevenpaul
- Start date
Robert Morse
Sponsor
For a REG-T Margin account, we are currently at 50% for SVIX and 100% for SVXY. In a PMA, we are currently 53% for SVIX and 78% for SVXY for account under $5mm. In addition to house margin, we have concentration restrictions. The best way to see what we require for risk is to email me directly, provide a sample portfolio (It is best if options do not expire in 2 days-just to give me time to run it). Margin for any symbol can change with market conditions.
Is it really allowed here to name brokers? I have been in trouble for doing that in different forums, if that is allowed here, give me more information about what exactly you are looking for, I have traded with different brokers. I think I can help you
I was just reading an extensive thread about Tasty Trade and also notice there is a whole forum about IB, so I assume there's no censorship of discussions on brokers. We can chat privately if you prefer.
In short, I use a pairs trading strategies with varying ETPs tracking the Vix futures. Net exposure to the underlying indeces tracked is quite low, say .15 to .25%. Due to the low exposure to the underlying, I believe some leverage is in order, but many brokers may not agree that exposure is as low as I believe it to be. Hence my quest for a broker with low margin requirements on long positions in SVIX. Thank you!
In short, I use a pairs trading strategies with varying ETPs tracking the Vix futures. Net exposure to the underlying indeces tracked is quite low, say .15 to .25%. Due to the low exposure to the underlying, I believe some leverage is in order, but many brokers may not agree that exposure is as low as I believe it to be. Hence my quest for a broker with low margin requirements on long positions in SVIX. Thank you!
Robert Morse
Sponsor
We offer EZE EMS Pro with their Strategy Server (Pairs Trader). It is a little expensive at $375/Month plus Market Data but is considered a professional level platform used by Hedge Funds and RIAs worldwide. We are one of the few retail brokers that offer it.