Trading without depositing all funds to a broker

He is shifting the loss to the broker. You think he will reload his account if he goes 200K in losses?

If I was his broker I would tell him OK, but you put the 90K in a blocked account at a decent bank, and you can only withdraw this money when I agree. If you lose I can immediatelly take these losses from the bank account based on a statement. And he should sign that he will not oppose to this withdrawal in any way. Afterwards he can go to court to (try to) recover his money. I am a broker not a banker. Broker, not broke.

 

Normally, the broker will close all his trades when the margin goes to zero.
This is why when doing super leverage, one uses the broker as a way to control
losses via account loss.
Actually, thinking of it, here he should load 10k per 10k (5% of his total capital risked in each load/reload). instead of two loads
(100k and 90k)

 

Thanks everyone for the answers, even you Galvinlee for calling me a newbie, lets make it clear, i have been trading for long enough to be past the newbie stage.

Regarding the margins, i will never never never ever hold a position over night, so 10K will do it for the daytrading margins if i never go over 5 contracts with 10K deposit.

Now tell me, what is the difference between opening a 10K account with having the 90K in my bank account and buying 5 crude contracts or opening a 100K account and buying 5 crude contracts?

 

Apologies to call you newbie as the way you ask question don't look like you are trading long enough (my bad), for example, I never consider myself super experience even I had been trading/investing for more than 10 years and still survive (profitable and never look back to work for someone else, but my first job in institutional really help a lot in term of gaining "real" trading knowledge and starting capital).

10K for 5 CL contract ? Are you using the bucket shop (spread betting) or a proper broker (IB, TD and etc) ? What is the margin they gave you ?

 

Yes, this is fine and correct to do.

 

I am not calling myself a highly experienced trader either, far from it.
In the past i used to trade currency's only and i recently switched to futures.

Regarding the margins, i was looking at MB trading for example and they require $1150 intraday maintenance margin.
AMP futures requires 1000$ intraday margin.

Still doing some research on this, that's why i made this thread

 

@Ruben

did u checkout dorman also located in usa yet?

 

From what i can see their margins are too high.

 

There are Brokers still that if I ACH $100,000 they will provide credit that day and allow me access to those funds even though some ACHs can take two or three days to process.

 

And who might those brokers be, pray tell?