Trading without depositing all funds to a broker

smallStops said:
If he is seeking high leverage, normally it means he is going for super high risks / high rewards.
Then it makes total sense to limit the possible capital loss, by managing the account "reloading/withdrawing".
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He is shifting the loss to the broker. You think he will reload his account if he goes 200K in losses?

If I was his broker I would tell him OK, but you put the 90K in a blocked account at a decent bank, and you can only withdraw this money when I agree. If you lose I can immediatelly take these losses from the bank account based on a statement. And he should sign that he will not oppose to this withdrawal in any way. Afterwards he can go to court to (try to) recover his money. I am a broker not a banker. Broker, not broke.
 
Normally, the broker will close all his trades when the margin goes to zero.
This is why when doing super leverage, one uses the broker as a way to control
losses via account loss.
Actually, thinking of it, here he should load 10k per 10k (5% of his total capital risked in each load/reload). instead of two loads
(100k and 90k)
 
Thanks everyone for the answers, even you Galvinlee for calling me a newbie, lets make it clear, i have been trading for long enough to be past the newbie stage.

Regarding the margins, i will never never never ever hold a position over night, so 10K will do it for the daytrading margins if i never go over 5 contracts with 10K deposit.

Now tell me, what is the difference between opening a 10K account with having the 90K in my bank account and buying 5 crude contracts or opening a 100K account and buying 5 crude contracts?
 
Ruben De Kock said:
Thanks everyone for the answers, even you Galvinlee for calling me a newbie, lets make it clear, i have been trading for long enough to be past the newbie stage.

Regarding the margins, i will never never never ever hold a position over night, so 10K will do it for the daytrading margins if i never go over 5 contracts with 10K deposit.

Now tell me, what is the difference between opening a 10K account with having the 90K in my bank account and buying 5 crude contracts or opening a 100K account and buying 5 crude contracts?
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Apologies to call you newbie as the way you ask question don't look like you are trading long enough (my bad), for example, I never consider myself super experience even I had been trading/investing for more than 10 years and still survive (profitable and never look back to work for someone else, but my first job in institutional really help a lot in term of gaining "real" trading knowledge and starting capital).

10K for 5 CL contract ? Are you using the bucket shop (spread betting) or a proper broker (IB, TD and etc) ? What is the margin they gave you ?
 
Ruben De Kock said:
What i was thinking about is instead of depositing all available funds to a broker is keeping the majority in my bank account and only a small part, lets say 10% as a deposit with a broker.
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Yes, this is fine and correct to do.
 
I am not calling myself a highly experienced trader either, far from it.
In the past i used to trade currency's only and i recently switched to futures.

Regarding the margins, i was looking at MB trading for example and they require $1150 intraday maintenance margin.
AMP futures requires 1000$ intraday margin.

Still doing some research on this, that's why i made this thread ;)
 
Ruben De Kock said:
Wasn't really sure where i should post this so .. If it is wrong, please excuse me.

What i was thinking about is instead of depositing all available funds to a broker is keeping the majority in my bank account and only a small part, lets say 10% as a deposit with a broker.

So for example if i do have 100K available for trading, i would deposit 10K and keep 90K in my bank account.
I would still manage the trading account as it would be a 100K account, so let's say if my profit target would be 5% a month on a 100K, i would like to make 5K with the 10K account.

I do realize this sounds very unrealistic, as it would mean 50% from the actual deposit, but if you look at it as a 100K account, it isn't anything abnormal, right?
With my system and money management i most like will never open a trade larger then 5 contracts on crude oil or mini s&p or mini NASDAQ, so no problems with margins either.
Of course when going trough a draw down or going below the 10K i would add additional funds.
On the other hand i would withdraw all profits every month to the bank account and only leave 10% of the total funds available in the trading account.

I am looking for anyone of you who have any experience with trading like this, if anyone ever tried it or just your opinions whatever it may be.
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There are Brokers still that if I ACH $100,000 they will provide credit that day and allow me access to those funds even though some ACHs can take two or three days to process.
 
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