Best firm for leverage

Discussion in 'Prop Firms' started by heelsfan23, Jan 9, 2004.

  1. I've searched the board, but it's difficult to find exactly what I'm looking for.

    Basically, I am looking for a firm that offers overnight leverage. My positions can last anywhere from a day to a month (and sometimes even longer). I have been trading on my own acct now for 2 years, and have over a 700% return ITD. I am ready (actually, very eager) to make this my full-time job, but due to my embarassingly low initial stake, it will be many years before I have the capital to do that.

    Can anyone recommend a firm to take a closer look at? Training, and other services provided by pro firms are unnecessary... I just need capital.

    Thanks in advance for any advice.
  2. Great sounding returns, wish I could boast of that!!

    Bright lets you use from 6x to 30x your 'stake' overnight (and longer) depending on risk, balances, personal commitment.
  3. what is their policy w/ regard to margin calls?
  4. Probably not quite the right question, and I'm sure my answer probably won't quite work either, but, here goes. . . . .

    (You should talk to Don Bright or Cash Coyne for better information):

    Assume your 'limit' is 20x equity. Today you opened with 'net equity' of $20,000 and you're 'holding' $400,000 (total absolute value, such as $200,000 in longs and $200,000 in shorts). You 'close' the day at $10,000 in net equity (you lost $10,000 total in all positions) - you must 'cut-back' to $200,000 "total holdings" (20x $10,000) or put in more capital ASAP.

    Hope that makes sense, if not, call one of the guys above that can better explain Brights methods/policies. There is not a more honest, reputable nor flexible firm in my realm of experience.
  5. thanks.

    even though i am disciplined and set tight stops, i just want to make sure that i would have at least a little breathing room on the downside before i would have to liquidate.
  6. Don't forget the interest charges on your 'holdings' - the SEC charges about .5%/month on ALL holdings that is charged to your account the last day of the month.

    Also, the Brights hit you for an amount less than the SEC's based on multiple factors but still a cost item even though they are quite fair in their charges and calculations.
  7. zdreg


    that looks like .005 which is impossible because it would be 6% annualized. never heards of any such charge from sec. broker loan rate? also you are charged on average daily balance
  8. Charged as broker ("professional"/Series 7 Req. firm). Monthly charge based on daily average.

    Probably less than 6% annually, would need to 'look-it-up'. Sorry.

    Bright fees are typically less (APR), calculated/charged daily.
  9. zdreg


    does bright charge you separately on your short positions? in regular retail account long $100,000-fully paid you can short $100,000 overnite and as long as short position does not go against you there are no interest charges on short position.
  10. I'm not sure that is correct. I think that position would generate $150k in margin debt, with interest applied thereon. But I could be wrong.
    #10     Jan 9, 2004