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

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

  1. achilles28


    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. achilles28


    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. achilles28


    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. achilles28


    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. achilles28



    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