20:1 leverage on stocks possible?

Discussion in 'Prop Firms' started by corgi, Aug 3, 2007.

  1. corgi



    I wonder if there is any brokers that would let me trade stocks with comparable leverage as trading futures (ie. 20:1 as in a 5% deposite margin in future contracts).

    I've looked into portfolio margining but it seems to me 20:1 is not quite possible. Or is it? Is prop the only way to go?

    Many thanks!

  2. Our traders can use a $million or more with $25,000 sub accounts. IMO, it takes at least that much to engage in good, working, strategies (opening only, market making, Mergers, Pairs, etc.)...but the amount used is up to the trader for the most part.

  3. In what part is the amount used not up to the trader?

    - Caementarius
  4. Leverage is what prop firms are all about and a retail would only give you up to 4:1. Do a search through the prop firms section and you will see different firms offering 20:1 all the up to 100:1.
  5. If in excess of Firm's policies, which we work out on an individual basis based on longevity, account balance, and basic risk parameters. We try to slow most traders down at about 50 to one intraday, 30 to one overnight.

    If there are special requests, we discuss with the trader.

  6. toc


    'Our traders can use a $million or more with $25,000 sub accounts'

    does this mean traders have to follow minimums on number of trades taken each day or they can follow their own strategies.
  7. hey don, can we get 2 million intraday bp ? its been 1 mil too long lol.. you do offer what many traders need to do their strategies, which is great..
  8. corgi


    Thanks for the replies. I'm new to stocks and never have any experience with prop firms so I have a lot of beginner's questions to ask. Please bear with me.

    I've heard that there are firms that would give 100% payout and commission is as low as .02 for high volume. That makes me wonder how prop firms make money? Did the firm make money from order flow rebate or something? Is there any hidden costs? Would I get execution at worse price than NBBO ...etc?

    The reason I ask is that I've heard of horror stories about prop firms cheating on customers. That is scary to me because what I'm thinking is to deposit capital into a prop firm and use it as a high leverage broker. So I really need the prop firm to be as reliable as a large brokerage. Does this make any sense to work with a prop firm in this way? Would anyone deposit a sizable sum into a prop firm (let's say a million dollar) because he wants to use a high leverage? Does a typical prop firm operate in a way that has any slight resemblance to the old day "bucket shops" type of operation?

    Don, you says you let your traders use 50:1 if a guy put up a million dollar with your firm would you let him buy $50 million of stocks?

    Thanks so much everyone.
  9. you come to the right place, you will get many different answers on here. .. buyer beware..
  10. corgi


    Is there any other way to get higher than a 4:1 retail leverage on stocks other than working with a prop firm?

    I'm a retail trader who trades exclusively futures and now wants to get into stocks. At the moment I'm in an embarassing situation that I'm not short on capital and yet I still have some way to go before meeting prime brokerage requirements. Is it a common practice for traders that need higher leverage to put up non-trivial sum of capital with a prop firm? I have no idea if it make any sense to expect to use a prop firm as a more assesible prime brokerage.

    BTW does anyone know what sort of leverage I can get on stocks with a "typical" prime brokerage?

    Thanks a lot.
    #10     Aug 3, 2007