What is your firm's policy on overnight positions?

Discussion in 'Prop Firms' started by angrybird, Jan 3, 2011.

  1. angrybird


    Traders out there, does your prop firm allow overnights? Is so what are the minimum capital requirements, how much leverage do you get, and what interest rate r u charged?
    Thanks and happy new year in advance to all answers
  2. keep it reasonable :confused:
  3. Not allowed... sometimes I curse the policy... other times I thank my lucky stars... either way I sleep well at night!
  4. angrybird


    Thanks for your responses. Which prop-firms allow overnight positions and what interest rate do they charge?
  5. Many traders carry 10,20, or 30 to one overnight (hedged of course). Long short $$ differential at GS is about 1.75%, but since we're so low now, not much in reality. 6 times equity overnight with no "haircut" (risk) charge. 6-10 times =2% per year which means youc can carry 10 times equtiy overnight for less than 1% per year haircut.

    Our traders make good use, not "abuse" of capital...and, of course base their trading on all costs involved. Some carry 50 times for short periods of time, but most stay within the 10-times range.


  6. why would any large trader take overnight trades on margin. this market is too iliquid and rigged to risk overnight positions either short or long...it's too damn risky and volatile to take any positions overnight.
    the market is rigged. for overnight positions.

    the trading volume is so thin anyone can rigg or manipulate the market gap ups an gap downs.

  7. Maverick74


    So size accordingly. I don't get it. What difference does it make if you have 100 shares of XYZ overnight or 1k shares of XYZ intra-day. You can easily adjust your risk. Or you can use options or trade dollar neutral in equities. I've been at prop firms for close to 10 years and I can tell you that over 90% of guys that blow out, blow out intra-day, not overnight.
  8. Since we have so many hedged/pairs traders - they find that as the spreads go in and out, and that they add and take off positions based on pre-determined prices....they take a lot home overnight...in fact, it's the gaps that make them the most money it seems. We are extremely focused at MOC and OPG time - perfect for pairs.

    Now, as far as straight long or straight short positions...I assume that would be up the trader and his research. Normally the adage is "winners take home winners, losers..." well, you get my point.


  9. overnight positions ruin your evening and weekend.

    especialy unhedged and large positions.

    the most important thing is the traders 'mental capital'.

    even if you are hedged your positions are in your head. and clouds your judgement sucks your mental energy.

  10. Maverick74


    That is why you should be HEDGED!
    #10     Jan 5, 2011