Ok i understand. But i have all my risk hedged. With the underlying. The strategy is a combination of futures and options and the underlying. So there is only as much that i am risking. And the broker could even stop me out once my loss is greater than half of my deposited margin(they don't have to wait till my margin is completely exhausted). It is fine with me. This is because i know how much i am risking. I understand how leverage works. There is so much bad omen around use of leverage. Well if you have a bad strategy you will still loose even though you use no leverage, and with leverage you would still lose. Just that leverage makes you loose faster than you expected. So no opportunity for risk management. In a non-directional hedging/arb strategy that i am talking about leverage does not really magnify my risk to unlimited. It is basically to maximize my profit. Anyways. Thank for response. It seems my question in not well understood or most probably no such companies/ brokers exist.
Yes based on the us regulations seems offshore only. But most offer no options trading. So that is why i am looking for a sort of margin lender, that opens an account themselves on any broker in the world and then they restrict the maximum potential portfolio loss to a particular value. The max loss could be 75% of the client deposited margin. Well hard to explain. Probably no one understand what i am typing.
We do understand but you are not going to get a stranger to do that. Maybe with a very very solid track record and once they personally know you, you can find someone to take that risk. You will have to build your account or get someone you already know to get on board.
You mean two Es contracts( so 500$ each)? What about initial margin requirements? I am not day trading i am swing trading ? Am i missing something here?
If you are holding overnight you indeed will need more margin, with AMP the maintenance margin for ES is $12.000 per contract. I don't think there is any way to get around this.
An example of an non directional/arbitrary going wrong with huge leverage is Long Term Capital. And they where genius in their field of economics and math... You do not know what you do not know and using huge leverage in an uncertain environment as a financial market is crazy. There are many bold traders, but there is none old bold trader.
Some brokers dont let you close your positions when your balance is negative, bc you "can't afford their comission" letting the trade run further against you. They also hedge against you and win money when you lose some.
Okay. So that is why the position is liquidated long before it goes into negative territory. That is why a risk limit is to be placed on the account, which a percentage of the deposited margin.