Do any brokers provide this risk control?

Discussion in 'Trading' started by erniej, Nov 1, 2007.

  1. Fimat or Man.
     
    #11     Nov 2, 2007
  2. erniej

    erniej

    thanks
     
    #12     Nov 2, 2007
  3. IB is not a clearing firm they are retail brokers.


    I believe the original posted indicated that he was a money manager not a retial guy. He may be confused as to the difference.

    We clear Goldman and FIMAT and both of them will execute whatever risk parameters we agree on, subject to their approval of course.
     
    #13     Nov 2, 2007
  4. First off, E-Minis offer 18-19x leverage.
    You can invest only half his money in futures, the rest in T-Bill, to reduce leverage.

    Perhaps you may set a different manteinance margin?
    But you'll have to manually reset the margin, as the index moves.
     
    #14     Nov 3, 2007
  5. erniej

    erniej

    i like the suggestion of putting half $ in t-bills. that is a very creative solution. thanks.
     
    #15     Nov 4, 2007
  6. dabao91

    dabao91


    Fimat or Man.


    Does Fimat or Man actually support this feature?
     
    #16     Nov 4, 2007
  7. tiddlywinks

    tiddlywinks

    TimberHill is a clearing agent. Timberhill (clearing) email contact in addition to Timberhill web redirection results to the interactivebrokers domain. Maybe you are confused as to how IB works.

    I know this post has no value to the original OP. Carry on.
     
    #17     Nov 4, 2007
  8. didn't mean to confuse, and THI is the parent company of IB and they may offer clearing services, I will take your word for it.
     
    #18     Nov 4, 2007
  9. erniej

    erniej

    my clients are aware of the risk involved. however, my question was not how much risk i should use, i am well aware of that. the question was, does any broker provide the automatic risk controls i described.
     
    #19     Nov 4, 2007
  10. ronblack

    ronblack

    For E-mini for example:

    Leverage = 50 x price x Number of contracts/current bankroll

    For T-Bonds for example:

    Leverage = 100,000 x Number of contracts /current bankroll

    In general:

    Leverage = Value of asset x Number /current bankroll

    It is easy to figure out how many contacts to sell to maintain a certain leverage and use the IB API with Excel to adjust positions automatically.

    Anyway, your 8x leverage sounds very high. I would not go above 2x given my risk/reward parameters. You are highly exposed.

    Ron
     
    #20     Nov 4, 2007