T Traveler Jan 28, 2010 #1 Are hedged long-short portfolios at most prop firms self-financing? If not, what is the typical spread between the debit and credit interest rates?
Are hedged long-short portfolios at most prop firms self-financing? If not, what is the typical spread between the debit and credit interest rates?
T Traveler Jan 28, 2010 #2 At IB, it's a little over 1% for 100k long-short, basically 1% on the debit and 0% on the credit side.
At IB, it's a little over 1% for 100k long-short, basically 1% on the debit and 0% on the credit side.
T Traveler Jan 31, 2010 #3 Anyone? No one knows hows much it's costing to keep an equal-dollar long-short portfolio overnight? Not talking about margin or risk, just the net financing cost. Assume no dividends.
Anyone? No one knows hows much it's costing to keep an equal-dollar long-short portfolio overnight? Not talking about margin or risk, just the net financing cost. Assume no dividends.
