Margin Loan in Prop. Firms

Discussion in 'Prop Firms' started by Nym, Jan 30, 2013.

  1. Nym


    I would like to ask you what is a reasonable spread for the margin loans when borrowing at prop. firms. Also, Can you use long and short term benchmarks?
  2. 1245


    Most prop firms don't allow over night positions, so there is no borrow. If they do, it should not be looked at in isolation. It's part of a package you are being offered. Also, if firms allow overnights but does not really want them because they have very little capital, they should increase that rate to deter over night position which also have more risk.

  3. Nym


    I got your point, so you would not recommend a Prop Firm, for holding a portfolio....

  4. Why would you want to Join a prop firm?
  5. a prop firm will generally not allow you to trade a portfolio. most require you to be out of all positions by the close of the day. If not, they provide little or no overnight leverage. You'll need to stick to a retail broker. The leverage may seem inciting, but its generally not applicable to overnight positions. You may want to check with firms like Echo or Bright but they usually require larger deposits.
  6. All you guys pretty much have is wrong.

    If you can make money and prove... They'll be down for it
  7. 1245


    It is my experience that non traditional prop firm, that take little of your profits and make their money on trading fees and training, don't care it you make money.They only care that you're active and don't lose money.

  8. Some firms offer 2:1 overnight. They charge a few cents to a few bucks depending on the size of the position. I don't see the purpose of holding overnight and will do so 1-2 times a month. I think I got charged around 75 cents to hold 100 shares of FB overnight.
  9. dealmaker


    It all depends on the prop firm and how your portfolio is set up, I'd try large firms like Echo or Bright.
  10. the interest rates for overnight margin are up there with a lot of firms, so make sure to ask about that too.
    #10     Feb 4, 2013