Those who complains with PDT can trade french market with IB I think

Discussion in 'Trading' started by harrytrader, Jun 24, 2003.

  1. There is no such rule as PDT on either stocks, options or futures.

    There is no uptick rule either so shorting stock doesn't have this counter edge. For stock the leverage is up to 5 (you chose yourself you're not obliged to use leverage of course) so twice as us stocks and to benefit from that there's no need to declare a special margin account.

    As for IB check yourself because I just saw it rapidly mentioned.
  2. Ditch


    Doesn't this apply for all non-us markets?
  3. Perhaps, it's just that I know french market whereas I don't know others for example it is not obvious that other markets offer up to 500% leverage.

  4. so far, so good.

    the only problem: IB does currently _NOT_ offer the french market. (EuroNext Stocks). Only futures are covered (Matif).

    IB offers German stocks.
  5. I only trade futures that's why I said check yourself as for IB but there must be some other brokers that can give access to french market easily. I saw an english broker that propose all european markets but can't remember the name at the moment.

  6. OHLC



    Leverage on Euronext is 5 times equity, so 400% leverage is the max someone could get.
    BTW, this 5X leverage does not apply to all stocks,
    it applies only to SRD stocks (ie the most liquids stocks and members of the SBF120, plus some ETFs).
    Same thing for shorting rules, no uptick straight shorts are for SRD stocks only.
    Last thing : due to the tax stamp or, on smaller amounts, to the high Euronext retail ticket, any kind of daytrading on Euronext thorugh a retail broker (as you suggest) is doomed to fail (except if one can get 5 times more profits per share than the most accomplished traders, I doubt this possibility).

    Well, Harry, seems like you are clueless about actual trading.
    I suspect you never traded...

    Your humble master,

  7. Of course it is for SRD by definition of SRD which has substituted to RM. generally only SRD is available to foreigners (and even only the most liquid ones) so I didn't see any urgency to precise. And on SRD one is used to talk about leverage of 5 and not 4 in france, if one want to be precise you can say rather that the debt-equity ratio is 4. The tax is ridiculous at least for swingtrading it is ok. Same thing for fees. if you have only 5000$ and take a position for 10000$ the fees and tax are peanuts compared to the expected gains (or loss of course if you are a bad trader). Between not be able to trade at all for people who cannot overcome PDT and this solution well the choice is obvious.

    Now single stock futures can be an alternative nevertheless you don't have the choice of leverage and are submitted to day to day margin rules whereas SRD benefits up to a 1 month delay until liquidation. If you want to daytrade and not swingtrade I think stock futures is better but I didn't look at them closely.

    P.S.: next time don't talk about what you don't know. I'm not trading stocks any more regularly for at least 7 years now for the reason that I find stupid to daytrade on stocks compared to futures indices but some people just don't feel at ease with futures so I proposed a solution. Nevertheless I used to trade them from time to time and as I am french I know perfectly what SRD is and before SRD what RM was so don't try to make silly affirmation like the one you are saying that I have never traded. Of course that tax and fees are barriers so what that's the game if it was easy where would be the game huh ? If there werent daytraders or swing traders on french stock market the brokers should have disappeared this is just common sense and there is a huge community of stock traders in France much more active than elitetrader's forum for example although they can be as silly as they can but it's another subject haha !

  8. def

    def Sponsor

    stamp tax is the main issue/problem that makes retail trading difficult in the french market.

    FWIW, we'll (IB) be offering german equity stock options with a target of August 1st.
  9. This is the FAQ for beginners on an institutional site:

    "Les débutants ne devraient jamais utiliser le levier maximum autorisé sur Euronext (levier 5 au SRD). "

    "Levier 5 au SRD " : do you see it ? it says "leverage of 5 for SRD" I use the normal convention of SRD so if you don't know the convention reproach yourself rather.

  10. OHLC



    Are you dumb or what ?? you said previously it was 500% leverage, look up your own post, I have no time to quote you.

    Just like 2:1 is 100% leverage, 5 to 1 is 400% leverage :eek:

    #10     Jun 24, 2003