4-1 leverage?

Discussion in 'Trading' started by GotherL, Sep 10, 2016.

  1. GotherL

    GotherL

    If I daytrade can I always use the max leverage on orders without worrying about margin call or settlement delay assuming I don't lose money on any of those transactions?

    Example. With $1000 My first trade is $4000. I profit $1000. With $2000 balance my next trade is $8000 and so on.
     
  2. rmorse

    rmorse Sponsor

    -To daytrade, you need $25,000 in a Reg-T account that morning before you trade.
    -With $25,000, you can have up to $100,000 in buying power (BP) that day.
    -BP is set each night before you start trading. Trading profits don't affect BP until the next day.

    My knowledge of portfolio margin is better than Reg-t, but that is what I expect.
     
  3. GotherL

    GotherL

    -To daytrade, you need $25,000 in a Reg-T account that morning before you trade.

    I am aware of that. But they're non-us brokers out there that give 4:1 on $1000 deposit.
     
  4. rmorse

    rmorse Sponsor

    Sorry, I'm not familiar with what non-US brokers do. I suppose that can do whatever their regulator allows.
     
  5. GotherL

    GotherL

    -With $25,000, you can have up to $100,000 in buying power (BP) that day.
    -BP is set each night before you start trading. Trading profits don't affect BP until the next day.

    Ok cool, so I don't have to worry about using max leverage everytime. Not saying that I'll thou.
     
  6. vanzandt

    vanzandt

    Call em and ask. Or go to their website and read the fine print.
    Which broker gives 4 to 1 leverage on $1000 btw?
     
  7. GotherL

    GotherL

    Tradezero. Did some research on them and they're legit is just that they're relatively new and their platform has some bugs. However, they don't allow US residents. (Which is fine by me thou since I am Canadian.)
     
  8. vanzandt

    vanzandt

    Well, either way, go slow on the "all in" trading,..... getting greedy too fast is a sure fire way to lose it all. jmho
     
  9. GotherL

    GotherL

    I won't unless it's something I am completely sure of or has a super good risk to reward.
     
  10. vanzandt

    vanzandt

    If I can offer one piece of advice, no matter how sure you are.... never never NEVER.... go all in. Trading is a marathon, its not a sprint. And its certainly not Texas Holdem. Speaking from years of experience here. Be smart, go slow. Don't learn the hard way. The markets are a cruel and unforgiving bitch.
     
    #10     Sep 10, 2016
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