Where does the intraday buying power come from

Discussion in 'Prop Firms' started by zg81, Jan 29, 2010.

  1. zg81


    Prop firms like Swifttrade have so many traders around the world, and the overall intraday buying power is huge. And it's unlikely that they deposited so much money in clearing firms. So who provides the intraday buying power for them? And if you know more, what are the terms of getting that?
  2. bahodirz


    i would love to know too, answer to this question.
  3. It doesn't exist, trades do not settle instantaneously but the clearing firm guarantees it will settle when, if position is opened and closed. If it all happens intraday it is all a wash +/- the p/l, that is all that settles is the p/l between clearing firms for the benefit of swift fbo the the trader.
  4. zg81


    Thank you, startraitor.

    May I ask you a few questions? I tried to PM you but was not able to. My email address is zg81 @ hotmail.
  5. tomk96


    some firms have leverage with their clearing firms as well. maybe the firm has $25mil in the clearing firm, but the clearing firm gives them 4:1 leverage on it.

    a lot probably has to do with so many people that aren't carrying positions.