Professional Trading 50:1 Leverage

Discussion in 'Prop Firms' started by Diego11, Mar 5, 2008.

  1. Diego11

    Diego11

    This is for day trading. Making a quick 70 cents and dumping the stock.
     
    #11     Mar 6, 2008
  2. ROTF. I hear MF Global offers extremely high leverage as well. You can risk up $142M of their capital and you don't have to worry about prices going limit up or down :D


     
    #12     Mar 6, 2008
  3. Diego11

    Diego11


    Post any sort of link to this firm.


    Post opinion about economic value on prop firms.
     
    #13     Mar 6, 2008
  4. gusy

    gusy

    What most people are trying to warn you about is that leverage is a two edged sword that will kill you.

    Think about the CTA's with years of experience having 20% draw downs.... If you have a well research system as some of them do and ONLY have a max drawdown of 20%, you will loose all your capital if you are leveraged anything over 4:1

    As 20% draws happen to experienced CTAs, think of what your drawdown might be and then multiply it by 2 and then see what kind of leverage you should use for the $10K you have. If you haven't blown up in a year... do the calculation again!

    Happy trading!
     
    #14     Mar 6, 2008
  5. Diego11

    Diego11

    Well that is if I lose 20% of my 10k or if I lose 2k? I really don't understand. Anyway I plan on making profits through stocks like PBR. Made money not lost it. Interested on prop buying on turns. 1 or 4 buuys or shorts. Also for day trading w/o 25k. thanks
     
    #15     Mar 6, 2008
  6. The thing is.

    If you have to ask, then you shoulnd't be using this type of leverage.

    If you really want it though, there are lots of companies that will allow you to trade e-mini's with a margin of $500 ... that should come very close to filling your bill.

    And to get to similar levels while trading stocks, simply borrow money and pool it with your own, and then leverage it.

    Good ideas, no?
     
    #16     Mar 6, 2008
  7. Diego11

    Diego11

    Well maybe if you had some general Prop documents I could read. It would help me out. I study finance but they dont have Prop institution 101 at my university. And I dont know what Courses institutions offer. Besides what institution offers 500$ leverage?

    Do I need a 7 series in order to receive .006 per stock + a good program with level 2?
    Can I day trade with 500$?

    Where can I find the answers for my questions?
     
    #17     Mar 6, 2008
  8. Diego11

    Diego11

    Pattern Day Trade?
    What kindo of leverage?
    Give me links on general prop information or possible books. Maybe even a person that could explain me hell I could even give 10 bucks dude.
    Where is the love? I know life is hard but sometimes we got to try harder that's all!!!
     
    #18     Mar 6, 2008
  9. Diego11

    Diego11

    BUMP:p :D :)


    COME ON PEOPLE I KNOW YOU HAVE SOME ANSWERS!!!
     
    #19     Mar 7, 2008
  10. Yeah, but they're a bit harsh if you fail. I mean, they throw you in jail! American brokers are a bit more friendly and offer just as much leverage with no consequenses whatsoever.


     
    #20     Mar 7, 2008