would you want more leverage if you could get it?

Discussion in 'Trading' started by cashmoney69, May 21, 2009.

  1. if someone came up to you and said i'll give you double, tripple, or more than what your account is worth at around 5.25% monthly (for no longer than 6mths), would you take the offer?

    basically 525.00 in interest for every 10,000

    why, why not?

    cm

    P.S

    I was given such an offer, and it sounded good up front, but that means that I'd need to make 5.25% a month every month to make the % payments.
     
  2. Lucrum

    Lucrum

    If the other party wants a written agreement and expects principle returned with interest then NO.

    Otherwise, if you have no integrity, take the money and trade like it's 1999.
     
  3. rcj

    rcj

    Nope ...

    i got plenty of cash in my acct...Im only a PIKER trading the YM
    and just one or two stks and ES. ....
    too skeerd of the big time guys...:p
     
  4. why not?
     
  5. Lucrum

    Lucrum

    Because odds are you'll lose the loan.
     
  6. 5.25% monthly seems a bit steep.......that's over 6k in interest for every 10k in equity. Even if you get 1000x leverage, u'll never be able to use it in full consistently b/c of small equity. That said, even if u make 200% ROI on 10k deposit, you lose roughly 33% on interes and another 25% or so in taxes......not very ideal.
     
  7. In fact, I'd die to be on the other side of the transaction. i'll loan you 100k for 5.25% monthly......heck, I'll make it 5% JUST FOR YOU. Good credit required.
     
  8. ecritt

    ecritt

    No, that's 85% annualized.

    Interactive Brokers charges about 1% right now to use leverage in a portfolio margin account that offers 15% minimum margin on stocks and 4% to 10% on futures.
     
  9. That would be 1.0525^12-1 in Interest. 60% Plus. I'd loan you the money at that rate, too, sound good?
     
  10. while we all like to think that we will make 60+% every year, it is a lot to cover. even paying 12% anually is a chunk considering that most pro traders lose money, this from some other post

    <<WHY HIDE THE NAMES - HERE IS ALL TO SEE - ENJOY - 6MG FILE NAMES STARTS ON PAGE 28 UNTIL 56

    http://www.tflinc.com/media/ExhibitA_part1v2.pdf >>

    most pro traders i know use leverage, i mean, look at the list, how can you expect to make enough for your daily fecal burger stop at jack in the box with $6000 in your account without a little or lot of leverage but f..k, 60%
     
    #10     May 22, 2009