Which broker has the higest leverage?

Quote from Don Bright:

"Why not ask for the biggest toilet to flush your money down" ....lol
Just a joke....

:)
Don
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Sorry, but I don't think you can possibly put it any better than that - LOL! :D

IMHO, leverage could be OK as "insurance" against margin calls etc, not to mention ElectricSavant's point about being more secured against losing your full account if your broker goes broke (no pun intended).

I'd say for those instances, it would be good to use leverage - I would say if you have most of your money in other, safer places (but reasonably liquid), then you can use that as "equity".

I.e. if your total net worth is $10M, have $1M in your account and trade up to $10M worth on that account (which has 10:1 or higher margin). That way you're only using virtual 10:1 leverage but in reality still using only 100% of your equity.

For those that want to use more than 10:1 - Well I don't know about that. Sorry if I'm offending anyone, but I think using much more than 10:1 is dangerous / reckless / stupid for countless reasons.

I'm trading futures myself, so I'm using enough leverage anyway with 5:1 to 10:1 (absolute minimum $5K per car on ES/NQ). This might make me less money from time to time, but hey - What happens if the market crashes (which will inevitably happen at some time in a trader's career) and you're long? Imagine a limit-lockdown for 200+ points (it's all happened), or a (more frequent) exchange shutdown or spike for that matter?

In those events, I'll be happy not to have used 50:1 or whatever. That's the times in a trader's life when humility all pays off within a few minutes... Live to fight another day, I'd say - And protect your family and whatever you may have.

People who use such tremendous leverage as 20:1 or more (particularly regularly) are basically pikers who're asking for this to happen one day, and not real traders. Fine if you're one of 5,000 traders at MLCO and have a heavy institutional body to back you up (that's why it's called institutional / professional leverage, folks), but not if you're private.

Not to mention people asking for 400:1 leverage or the like. Yous should start practicing and rehearsing "the cup-holder", so you got it down par by the time you gotta do it live in front of the plaza in freezin' down-town NYC. Good Luck, "Aqualung".


Scientist.


P.S: Get better at trading and you won't need so much leverage...
 
1. When your right, you earn a lot of money.
2. When your wrong, you take your losses quickly. (Otherwise you go broke..!).
3. You take only the safe trades, where odds are on your side.
4. You dont have to invest so much in trading capital.
 
1. When your right, you cut your profits quickly.
2. When your wrong, you let your losses run because you can't afford to lose
3. You cherry pick your trades, miss a lot of good ones and end taking the worst ones.
4. You dont have money and should not be trading
:)
 
Quote from MarathonTrading:

1. When your right, you cut your profits quickly.
2. When your wrong, you let your losses run because you can't afford to lose
3. You cherry pick your trades, miss a lot of good ones and end taking the worst ones.
4. You dont have money and should not be trading
:)
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ROFL!!! Excellent!

I was just about to post a similar bullet-post to reply Baruch's - Oh well - All the work's been done... :D
 
Quote from Baruch:

Why cutting your profits, when they get very huge because of the high leverage?
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LOL. No offense to my question, but : Do you trade?
Take a day off to really think about your question. Think about it.

I think you should start a new thread with just that question as a topic!
I'm sure it would make for a lot of very interesting responses!

:)
 
As George Soros says: "It takes courage to be a pig". If you go for the big money, you must be a pig. The problem with most traders are that they are not pigs, but too afraid. If you really believe in your position, it cant be big enough. Just ask Soros.
 
Quote from Baruch:

1. When your right, you earn a lot of money.
2. When your wrong, you take your losses quickly. (Otherwise you go broke..!).
3. You take only the safe trades, where odds are on your side.
4. You dont have to invest so much in trading capital.
More...

Good analysis, Baruch. It seems that when I put it that way, it comes out like I am encouraging over-trading for selfish reasons ....which I don't do.....

Don
 
Quote from Baruch:

As George Soros says: "It takes courage to be a pig". If you go for the big money, you must be a pig. The problem with most traders are that they are not pigs, but too afraid. If you really believe in your position, it cant be big enough. Just ask Soros.
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My gut tells me the street is littered with more nick leeson's and LTCM's than those who believe in that methodology and won big.
 
Quote from def:



My gut tells me the street is littered with more nick leeson's and LTCM's than those who believe in that methodology.
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Hi Def!! Long time, no chat. My brother is in Egypt, heading for Dubai, and was going to keep going around to your location, but I'm stuck here (work, work, work,) :D

Good comments above by you...

Don
 
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