Margin Loan in Prop. Firms

N

Nym

Hi,
I would like to ask you what is a reasonable spread for the margin loans when borrowing at prop. firms. Also, Can you use long and short term benchmarks?
 
Quote from Nym:

Hi,
I would like to ask you what is a reasonable spread for the margin loans when borrowing at prop. firms. Also, Can you use long and short term benchmarks?
More...

Most prop firms don't allow over night positions, so there is no borrow. If they do, it should not be looked at in isolation. It's part of a package you are being offered. Also, if firms allow overnights but does not really want them because they have very little capital, they should increase that rate to deter over night position which also have more risk.

1245
 
a prop firm will generally not allow you to trade a portfolio. most require you to be out of all positions by the close of the day. If not, they provide little or no overnight leverage. You'll need to stick to a retail broker. The leverage may seem inciting, but its generally not applicable to overnight positions. You may want to check with firms like Echo or Bright but they usually require larger deposits.
 
Quote from WhiteOut56:

All you guys pretty much have is wrong.

If you can make money and prove... They'll be down for it
More...

It is my experience that non traditional prop firm, that take little of your profits and make their money on trading fees and training, don't care it you make money.They only care that you're active and don't lose money.

1245
 
Some firms offer 2:1 overnight. They charge a few cents to a few bucks depending on the size of the position. I don't see the purpose of holding overnight and will do so 1-2 times a month. I think I got charged around 75 cents to hold 100 shares of FB overnight.
 
Quote from accountingsucks:

Some firms offer 2:1 overnight. They charge a few cents to a few bucks depending on the size of the position. I don't see the purpose of holding overnight and will do so 1-2 times a month. I think I got charged around 75 cents to hold 100 shares of FB overnight.
More...

It all depends on the prop firm and how your portfolio is set up, I'd try large firms like Echo or Bright.
 
You must log in or register to reply here.
Back
Top