Most forex brokers offer high leverage as you. Some as high 400:1 leverage. With Leverage, you put down a small margin. I totally understand the risk of trading on leverage. However, I do have a trading system that I have backtested and it works for futures spread trading as well as options trading. The problem is futures and short options do not offer as much leverage as I want. The thing with the forex brokers that offer leverage as high as 100:1 is that if my margin is 1000$ and I have 100:1 leverage I could get to control 100,000$ worth of an fx pair. Once I lose close to my initial 1000$ I am liquidated. I love this model of trading. Because in the end I am loosing only my money and I am not loosing their own. Now my question is this: like to trade with Thinkorswim because of some advanced futures provided. However professional platforms like Tos, E*trade, or Ibkr do not offer those large amounts of leverage. So I would like to know if there are companies that open accounts in their own name on any broker, and then they deposit a large amount of money. But then they allow small traders like me trade but then I deposit a small amount, but I can not lose more than the small amount I put if not I have to refund. So I can't lose their own money and in actuality, I am repeating the high leverage forex broker model but on any broker I want. The benefit that the company gets is maybe my profit split or better still interests taking out of my deposited margin. Also, I benefit because i can trade on any legit platform as I want. Sorry, the post was just too long. I am new here and this is my very first post online anywhere. Please, don't call me ignorant or unwise. I know why i need this leverage, so i as well know the risk associated. In the end i am only risking my own money because the account has a limit(the company imposes the maximum i can loose which is less than or equal to my deposited small money and not their money). I hope my question is understood. Thanks.
Please keep in mind that retail Forex accounts can become negative too. That means you can lose more than your deposit.
I would not call you ignorant or unwise, but inexperienced, based on the bolded bit above. Welcome to the machine.
You can lever huge size using futures spreads (SPAN margin). If your broker doesn't give you the margin discounts, you need to open an account with an FCM that does.
Thanks for your response. Yes but I think most brokers are cautious and liquidate positions when the net loss is equal to or greater than 60% - 80% of the deposited margin. This model is still ok.
Thanks for your response. However, on short options on futures, I need leverage as high as 50 to 1, obviously, the FCMs don't offer such discounts? I know the leverage size sounds ridiculous but I know the risks that come with it as well. Thanks once again.
Yes, but if the NZD or some other low-liquidity currency makes a sudden 1000 pip move against your position, your friendly FX broker will send "Tony the Butcher" to collect his money.
Lol. very true. Ok, let's say I am referring to liquid currencies or commodities here. However, I get your point. Thanks.
Since these are your first posts online ANYWHERE, here's a helpful handy tip for brevity's sake... You do not have to preface your replies to everyone who responds to you with a "thank you for your response". ;-)