Higher leverage

Discussion in 'Professional Trading' started by heech, Feb 28, 2009.

  1. heech



    I'm interested in learning options for increasing leverage, while trading equities/options. I have a strategy that seems to preform well...

    I have anywhere from $100k-$1m ready to put to work. Right now, with IB's portfolio margin, I can buy approx 4x my capital.

    I'm curious what my options are for going beyond that, if I'd like. How would I borrow more money?
  2. Prop firms can get you 10:1 leverage. Maybe even more if they get to know you. Enough rope to hang you with.
  3. heech


    Ah ha.

    I had seen all the discussion/mention of prop trading on this forum, but never really paid attention. I have plenty of capital, a good trading platform, and didn't think they would have anything to offer.

    Looks like I have to do some more research there. Is the primary draw of joining a prop firm the higher leverage available?

    I'm not really day-trading. My strategy requires me to hold up to 30 days. I'm also not looking to incur significantly more commissions (than what I'm paying IB), and I want reasonable margin rates (3%-4.5%). I also don't want to use anyone else's platform; I'd prefer to keep my own.

    Is there a prop firm out there that would make sense for me?
  4. you have 100k-1 million?

    um, why not trade currencies, you get 1:100 leverage.

    So your 1 million dollar stake becomes 100 million. I highly doubt you need 1:100 if you have 100k-1m.

    Are you Nick Leeson? Lol. :D