I don't answer questions from people whom I sometime in the past had to add into my ignore list... I don't need such negative people around me. They better should go somewhere else, for example to hell!
Uh no...credit received is held in your margin account for the position you just opened but you cannot magically use that money as collateral for other new trades.... let me think the last time the markets allowed you to sell securities and use the proceeds to buy other securities and repeat over and over again.....AHHHHH yes...It was the Stock Market Crash of 1929.... But why should history and facts of how margin works get in the way of you ruling the paper world of trading where unicorns shit profits and leprechauns act as market makers.
Your are using the low reward and extreme high risk super leverage strategy which means you will win most of time with small gains, until one day when the sh** hit the fan (market gap up/down) and you will loss ALL Plus many times of your initial 10K capital. IB or whoever your broker will knock your door (even you are not in US) if your initial capital is not enough to cover your loss. Good luck to you and your "investor".
Just let the man blow up in peace, will ya, people? Best of luck, marsman! EDIT: You're gonna need it.
Since I like to predict, here is my prediction about the Marsman-experience: You are going to find that the fills with real money are much less favorable/profitable than with sim. Also the premiums immediately available for margin might not be true, so that will slow down the progress. I expect still a good 10-15% weekly returns for 2-3 weeks, when a grain of sand will get into the machine and the inevitable happens, getting a 40% DD. Still keep it up and update us on the progress. Goodspeed!
He will continue collect the "profit sharing" from his investor until the sh** hit the fan (which will happen eventually) He will not blow up, but his "investor" will (If I read the thread correctly, the live trading account is opened under his investor's name). This means IB or whoever broker will after his investor (and not him) if the loss is more than the initial capital. Indeed, marsman is smarter than most of us here.
"Paper trading is like Good Luck, 30% is easy with $1000 Cash Accounts once you get above the $1 million dollar mark things change pretty quick but you will find that out yourself. None of us can alter your plans, none of us wish to change your chance to become the next SuperTrader like Karen was.
Oh, I see I got again many feedback from some true "experts", even from some really real "elite traders" who made a killing in the markets!... Thx guys so much!... Some of these experts even claim that they are masters in daytrading, and from their other postings one reads that their current account value is just $600 or so... Yes, very convincing, thx for all the fish, guys! It's very entertaining!... Lemme ask you this: How much do you yourself trade at all? a) more than 100k? b) more than 10k and less than 100k? c) less than 10k? If you can't answer this question, then you better shouldn't write in this journal anymore. Thx. It is where rubber meets the road, ie. talk the talk, walk walk the walk, not talk hot air here, rather back your talk with some facts! Like I do...
He's so arrogant... https://www.interactivebrokers.com.au/en/index.php?f=marginnew&p=opt Stock Options 1: (naked short) Call Price + Maximum ((20% 2 * Underlying Price - Out of the Money Amount), (10% * Underlying Price)) Clearly states the margin consists of the call price... therefore the credit collected is part of the current margin and can't be used again...
@JackRab, that I thought myself too, but practice is different than what is written there... Has none of you guys an IB acct to simply try it out yourself?... But there are so many naysayer "experts" here on this issue... I wonder how they know...