do any prop firms have mutual fund trading?

Discussion in 'Prop Firms' started by dafugginman, Feb 13, 2003.

  1. would appreciate it. you can't even trade mutual funds on margin in your brokerage account. SLK, aka redi, does not have this feature.
  2. WarEagle

    WarEagle Moderator

    Why not go directly through the fund families you want and save the commissions?
  3. well, i have a short term, consistent timing strategy worth 30% a year. this means i would need a million, in cash, since you cannot buy mutual funds on margin (at least not at datek/ameritrade. please correct me if you can do this elsewhere). i've been trading a year, so could maybe come up with 100k, and that's if i forgo (sp) a house and the car that i need. what would i get out of it.'s a great strategy, and 30k will not suffice - at all.. my last resort would be a hedge fund, but prop trading is far, far more attractive since i would get a much higher cut, without the hassles. on a brighter note, i could help friends and family make money. regardless, i'll do whatever i have to in order to get this strategy going, but would much prefer to stay prop.

    also, is it true that true that you cannot short open end funds? (the 30% assumes you cannot)
  4. I'm positive it can be done through your firm. Ask JM.

    you can MARGIN a open end fund once you pay for it and hold it for 30 days....all open end funds are considered the same as a new issue of stock...after 30 days, you could move 50,000 worth of a fund to margin and receive buying power on it
  6. I suggest you use one of the RYDEX DYNAMIC MUTUAL FUNDS. They offer a fund geared towards active money managers or investors. These Dynamic funds offer 2 times the exposure(that's your leverage) for the Titan Fund(s&p500 fund), Tempest(bear S&P500) , Venture (bear nas100) and Velocity(bull nas100). You can trade in and out as many times as you want and have two trading times. One at 10:30 and 3:45 . Its a great family of funds if you like to trade sectors and direction of interest rates. They are a no-load fund. Check it out .it might be what you are looking for.
  7. alanm


    Why does the system work for mutual funds and not the securities underlying them?