Hi, 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?
Prop firms can get you 10:1 leverage. Maybe even more if they get to know you. Enough rope to hang you with.
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?
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.