Funding an account with a T-Bill.

Discussion in 'Trading' started by Il Principe, Oct 10, 2006.

  1. bump


    What's a good rate to earn as interest.

    A broker is offering me x% of the t-bill rate less z bps.

    So my question is what values of x & z above would result in a competitive interest rate to earn on balances.

    #21     Dec 4, 2007
  2. If you are a futures trader I am quite sure you will not interested in what t-bills bring as in interest rate. I am interested in that topic because of safety of our segregated account.

    After MF global (and I think there is another broker too) I can not trust segregated account. When you open web site of brokarage companies and read safety of account they all mentioned about futures account is saparete from their accounts. After MF Global (I think my feeling changes as after and before MF Global) I am not sure what it means "segregated account" if broker can violate.

    Yes money turn back to trader a few monthes ago but this happned 2011 I can imagine how uch they get old after 2-3 years, pluss first days their account freeze and they couldn't ofset positions (The Trend Follower Bible by Andrew Abraham)

    and still there is no improvement about that, regulator is look like they are sitting and hope that traders will forget it untill another happenings.

    So that point I think (as a futures trader) big part of problem is not interest rate is not fit my style or how much commision I will pay to have t-bills or even %95 agains margin can be %90 who cares even %70 ; problem is if broker goes down as sample of MF Global my t-bill will be safe or won't? If brokarage violate the segregrated account are they available to violate t-bills agains margin? If I will buy treasurydirect of course I have to transfer that t-bills to brokarage are still in safe as in my name or it will be just another "financial illusion"?

    Maybe I am look like paranoid about that, but if you are futures trader or another who is trading with high leverage, figting with yourself everyday to take correct decisions and of story have a little money you will not want to lose it just because of "bad management of brokarage"

    I read many commends some of them really know what they are talking so I am asking these people is there any safier way then segregrated account via on using t-bills as margin?

    Good trades
    #22     Feb 12, 2015