More Leverage

With more than 100k you can open a portfolio margin account with IB and get 6 times leverage if you adhere to certain risk controls. Works like a charm.
 
If I use 100% of my margin on trading and equity, I am still left with 1/3 of my account buying power for options. If I buy a call/put leap, it should be a safe way to add another 6% to my gain. Does anyone see a potential problem with this?
 
Quote from alphastocks:

With more than 100k you can open a portfolio margin account with IB and get 6 times leverage if you adhere to certain risk controls. Works like a charm.

Thanks Alfastocks I'll check them out.
 
Quote from alphastocks:

With more than 100k you can open a portfolio margin account with IB and get 6 times leverage if you adhere to certain risk controls. Works like a charm.
We'll you're right, up to 6 times on options if diversified, 3:1 on concentration risk (me) that is great. Too bad it doesn't work on equities. This could shoot my profits through the roof.

Thanx again.
 
Quote from sprtrstnc:

We'll you're right, up to 6 times on options if diversified, 3:1 on concentration risk (me) that is great. Too bad it doesn't work on equities. This could shoot my profits through the roof.

Thanx again.


It does work on equities. 6:1
 
Quote from sprtrstnc:

The ETF equivalent of the stock I trade doesn't move as much as the equity. Did you have something else in mind. I'm assuming you meant the ETF may have more volatility?
This are 2X ETFs for indexes.
If 2X ETFs do exist for individual stocks, they would have too low liquidity.
 
I'm surprised no one has said this...

go to a prop firm and negotiate. You'll need a series 7, but with that, they can give you as much leverage as they trust you with. Getting 4:1 or 6:1 overnight shouldn't really be an issue... I'm pretty sure Don Bright's firm will give you that, I think echo will, schonfeld, probably assent... just checkout the prop firms.
 
Quote from NYOBScalper:

I'm surprised no one has said this...

go to a prop firm and negotiate. You'll need a series 7, but with that, they can give you as much leverage as they trust you with. Getting 4:1 or 6:1 overnight shouldn't really be an issue... I'm pretty sure Don Bright's firm will give you that, I think echo will, schonfeld, probably assent... just checkout the prop firms.
I talked with echo and they were only interested in a trader with a large amount of trades - I assume thats how they make their money. Anyways I've been doing alot of research on prop firms (bad reputation).

Thanx
 
I used 6 times for equities, so unless they have changed something I think you got the wrong info


Quote from sprtrstnc:

We'll you're right, up to 6 times on options if diversified, 3:1 on concentration risk (me) that is great. Too bad it doesn't work on equities. This could shoot my profits through the roof.

Thanx again.
 
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