Do Banks Grant 100:1+ Leverage for HNW Clients?

Discussion in 'Forex' started by achilles28, Mar 13, 2006.

  1. I've talked to a few supposed higher ups working interbank who've conveyed banks will customize leverage to fit client needs. This includes granting leverage up and beyond 100:1.

    Can anyone speak to this?
  2. What do you need 100:1 leverage for? leverage kills!
  3. Sure, and so does the CME. The majors on CME are >100:1 leverage.
  4. Common misnomer.

    Leverage doesn't kill. IMPROPERLY used leverage kills.

    Your % risk per trade provides a rough approximation of max loss - assuming you don't trade in or around numbers.

    All leverage does is make available more capital to trade with.

    Low leverage isn't going to save a losing strategy. It just ensures a slower death.
  5. Thanks, riskarb.

    Does it require any arm twisting or will banks just give the nod if higher leverage is requested?
  6. tomcole


    How does a nobody twist the arm of a major bank?

    The only reason you're chasing high leverage deals is you dont have any money, and banks dont like folks without money.
  7. alanm


    Or you have a low-variance, low-yield strategy that requires a lot of leverage to yield worthwhile gains.

    It's all about using the amount of leverage appropriate for the risk.
  8. they dont... 33:1 for starters (3%), then after a few mths they may try to give u 50:1 but that has to go thru whatever committees who normally have better things to do... note: there is a big push from the banks to weed out 'aggressive' trading... typically characterized by use of high leverage... that said, you may still find a bank willing to give u 100:1... nothing's ever impossible
  9. Arm twisting = longer negotiations than usual.

    I'm using colloquial dialogue here, Tomcole. I guess your impeccable analysis missed that? lol.

    The rest of your post is drivel. Have you ever worked for a bank forex dept? Or enjoyed direct contact with those who had?

    If not, then why are you posting??

    Thanks Tomcole, but I don't need anymore of your 'altruistic generosity'.

  10. You missed one. MAXIMIZING OPPORTUNITY.

    Leverage proportionate to risk was already discussed. By me. So thanks for 'coming down' to my level and telling me what i already know...

    #10     Mar 13, 2006