MBTrading -- no margin trading of 3x ETFs and you must wear boxers

Discussion in 'Retail Brokers' started by SideShowBob, Feb 24, 2009.

  1. Dear Valued Client:

    Effective tomorrow February 25, 2009, our clearing firm will no longer allow Three Times (3x) Leveraged Exchange Traded Funds to be traded on margin. Additionally, options strategies traded on the underlying leveraged exchange traded funds will be limited to the following:

    Long Call
    Long Put
    Covered Call
    Debit Spreads

    Below are the 16 Leveraged exchange traded funds that will be affected:
    BGU Large Cap Bull 3x Shares
    TNA Small Cap Bull 3x Shares
    ERX Energy Bull 3x Shares
    FAS Financial Bull 3x Shares
    DZK Developed Markets Bull 3x Shares
    EDC Emerging Markets Bull 3x Shares
    TYH Technology Bull 3x Shares
    MWJ Mid Cap Bull 3x Shares
    BGZ Large Cap Bear 3x Shares
    TZA Small Cap Bear 3x Shares
    ERY Energy Bear 3x Shares
    FAZ Financial Bear 3x Shares
    DPK Developed Markets Bear 3x Shares
    EDZ Emerging Markets Bear 3x Shares
    TYP Technology Bear 3x Shares
    MWN Mid Cap Bear 3x Shares

    If you own these funds you will need to make certain that they are fully paid for and no longer on margin.

    If you have any questions feel free to contact us at 866-628-3001.

    Thank you,

    MB Trading

    <i>As a side note, we also reserve the right to tell you what foods you can eat, and what type of underwear to wear (we prefer boxers although thongs are OK for the ladies)</i>
  2. cstfx


    Thongs are all played out.
  3. They KILLED me with this...I had just spent a month developing an automated system that was very profitable playing these instruments.

    Without the margin, its ok, but far less effective.
  4. Time to move to IB?
  5. zdreg


    your clearing firm is penson. the change has nothing to do with mbtrading. look at the price of pnsn. nothing should surprise you.
  6. Hmmm....i may have to move. I did not realize Penson was public. Wonder if I am even safe there...