Hedge fund margin

Discussion in 'Prop Firms' started by OHTodd, Jul 16, 2010.

  1. OHTodd

    OHTodd

    Just curious, how much intra-day margin would a hedge fund with $50mm get? 6:1?
     
  2. Depends on their setup. Prime Brokers only give out roughly 6:1 for equities (it varies depending on intra-day vs. overnight and takes positions into account). If the fund executes/clears through a prop firm (as many do) then they could get as much leverage as the prop firm's risk group will allow.