Overnight Margin

Discussion in 'Prop Firms' started by MoneyMatthew, Aug 21, 2011.

  1. Hello all,

    I know this question has been asked multiple times in the past but I would like to know how things are currently.

    What is the average allowable overnight margin with most of the well known prop firms? Please do not name any firms outside of the USA.

    I am not going to do any pairs trading btw. Directional only. I know Echo has a $5K deposit minimum but they want a Series 7. Bright Trade wants too much (In my opinion and limited bankroll) for a minimum deposit last time I checked ($25K) plus a Series 7.

    I heard awhile back that Dimension Trading had like 3:1??

    Thank you,
  2. You should embrace the Series 7 as it opens many opportunities if you don't make it in trading.
  3. JamesL


    Dimension is now a CBSX firm, so you will still have to take a test anyway.
  4. I'd rather take the 56 exam over the 7 any day of the week. I should not have mentioned the Series 7 in my original post.

    My question is simple. What is the average overnight margin allowed by prop firms in the USA? 3 to 1? 4 to 1? ect..

    Thanks again,
  5. Based on my research the average seems to be 4:1. Call a few and ask. Wanting to hold overnight will probably require more upfront $$ and some do not allow it at all.

  6. +1
  7. Thank you Bill.
  8. 4:1 is basic retail PDT margin. Our traders get 6 to one with no "haircut fee" and go 10 to one, and pay less than 1% Per year for doing so. We slow people down at around 30 to one, and yes, it can cost a bit more.

    Re: Series 7 and 56, I think it's going to be an "either/or" in the very near future (I can't be specific at this time)... I noticed the earlier post who said to "embrace" the 7... because it can be useful for many other things, I don't think the 56 can, really. And, overally guys, it's just a test... the hours spent to study are infintesimal compared to the hours a serious, successful trader puts in monthly for their trading "business."

    And, look, I agree we all hate "gov't" intervention or whatever, but you need a license to drive a car or open a restaurant... really, no big deal.

  9. Well Don your firm (Bright Trade) and Echo are truly top tier compared to the others out there. I've heard a lot of good things about Dimension Trading as well.

    If you require more than $10K to hold any overnight directional trades (I dont trade pairs) then I am simply too much of a small fish to join you at this time.

    I might just go with a retail account until I get my bankroll built up. My system can hold a position for up to a few months at a time so a retail margin account should not destroy my edge as badly as it would trading intraday.


  10. +1
    #10     Aug 21, 2011