No thats the basic framework along with no more than 3:1 in one position. I've found that I get some leeway if im carrying etf's because there is less "disaster" gap risk.
Bright Trading are a competitor of them and yet speak quite highly of Echo. That must count for something.
I wonder what the merrill acquisition has done for echo.. if anything. Is echo just some kind of line item on the merrill books?
Echo's president (I think he still is) is Jeff, was a Bright Trader, as was the founder of Van Buren (who merged with Echo "back in the day"). FYI. I have had recent transferee's from Echo who did say that things have tightened up a bit, but I find your numbers to be really (really) tight? He Jeff and Rob..."say it ain't so" LOL. And, yes, I have respect for the people at Echo. Don
It's 5:1 per side, 10:1 total, does that sound more reasonable? I don't know Jeff personally as I deal with the NY partners but I understand they are all great guys. Nothing but good experiences from day 1 and I've been there 2 years this month after spending 10 years at Schonfeld.
That's disappointing to hear. At 10:1 total I only get $500k even if my deposit is $50k. They do have good low commish rates. Looks like they are limited how much trader can lose by limiting big positions and low overnight totals.
Everything is negotiable, if you think you need more leverage overnight then call them up and explain what you want to do and why there is little if any chance of you blowing out. If you wanted to go max leverage overnight all in DNDN then that is crazy. If you want more leverage and you have a well diversified basket then they will work out something with you. I really don't understand the point of all these questions, just call them, there are no absolute numbers, that's what negotiable means.
Our traders, in general, use well over a $million with $20K or so of their own money...and (again, IMO) it takes at least that much to engage in many of the current working strategies. Once again, I'm pretty sure that you may be a bit low on what Echo offers their traders. And, yes, most of the Echo guys that I have met or who have come here are great guys. Don
All these traders you have with $20k deposits that usually hold a $million or more over night, how much do they pay in interest a month? A trader with $20k deposit holding $1million that is perfectly paired dollar for dollar holds his positions for an entire month. At the end of the month how much has he paid in interests in total? Haircut and the spread between long and short included, how much does it costs all these traders?