NexusFi: Find Your Edge


Home Menu

 





Your broker allow equities as margin for futures trading?


Discussion in Brokers

Updated
    1. trending_up 2,757 views
    2. thumb_up 0 thanks given
    3. group 2 followers
    1. forum 6 posts
    2. attach_file 0 attachments




 
Search this Thread

Your broker allow equities as margin for futures trading?

  #1 (permalink)
 
silver99's Avatar
 silver99 
Mineola, TX
Legendary Market Wizard
 
Platform: Ninja Trader
Broker: Dorman
Trading: CL & ES
Posts: 1,532 since Feb 2010
Thanks Given: 3,649
Thanks Received: 4,206

I am trying to locate a broker that will allow using stocks held in the account to be used as margin for futures equity index trading. I currently use TS and they only allow cash as margin for futures trading. Thank you for any direction you can give me.

Follow me on Twitter Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Ninja Mobile Trader VPS (ninjamobiletrader.com)
Trading Reviews and Vendors
Are there any eval firms that allow you to sink to your …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
37 thanks
NexusFi site changelog and issues/problem reporting
22 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
20 thanks
  #3 (permalink)
Third Base
hong kong
 
Posts: 8 since Dec 2012
Thanks Given: 0
Thanks Received: 8



silver99 View Post
I am trying to locate a broker that will allow using stocks held in the account to be used as margin for futures equity index trading. I currently use TS and they only allow cash as margin for futures trading. Thank you for any direction you can give me.

IB, Fidelity, not sure about Schwab ?

Reply With Quote
  #4 (permalink)
 
silver99's Avatar
 silver99 
Mineola, TX
Legendary Market Wizard
 
Platform: Ninja Trader
Broker: Dorman
Trading: CL & ES
Posts: 1,532 since Feb 2010
Thanks Given: 3,649
Thanks Received: 4,206

IB says no, as do all other brokers I contacted. Regulation T.

Follow me on Twitter Started this thread Reply With Quote
  #5 (permalink)
Third Base
hong kong
 
Posts: 8 since Dec 2012
Thanks Given: 0
Thanks Received: 8


silver99 View Post
IB says no, as do all other brokers I contacted. Regulation T.


Are you sure? You deposit a stock. Reg T margin is 50%. You trade the futures off of the excess cash and if flat by day on the futures side you should probably avoid any interest as well.

Reply With Quote
  #6 (permalink)
 
silver99's Avatar
 silver99 
Mineola, TX
Legendary Market Wizard
 
Platform: Ninja Trader
Broker: Dorman
Trading: CL & ES
Posts: 1,532 since Feb 2010
Thanks Given: 3,649
Thanks Received: 4,206

Your scenario is what I was thinking would be customary. But after speaking with numerous brokers, it isn't the case. Does your broker treat your account as you describe, if so - who is it? Thank you.

Follow me on Twitter Started this thread Reply With Quote
  #7 (permalink)
Third Base
hong kong
 
Posts: 8 since Dec 2012
Thanks Given: 0
Thanks Received: 8


silver99 View Post
Your scenario is what I was thinking would be customary. But after speaking with numerous brokers, it isn't the case. Does your broker treat your account as you describe, if so - who is it? Thank you.

You must be asking the wrong question or are asking to deposit securities that aren't marginable. Think about it, if you deposit a security that offers 50% margin, you would be able to withdraw cash from the account.

Instead of asking if you can use securities as margin for futures, ask, "if I deposit a marginable security, could I use the excess liquidity to trade futures?"

Reply With Quote




Last Updated on January 2, 2013


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts