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Old 07-07-2005, 12:31   #9
Nonpiker
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Re: trading forex with a bank?

Quote:
Originally Posted by gnoll
What is a credit line?


If you are somewhat of an established fund with a proven track record some banks will basically invest in your fund. They typically do this by extending you a credit line. They will then pay you a percentage of what you earn; often it is not as sweet a deal as what is typical. In addition to earning on your returns (hopefully) they also expect to see your flow off it.

Also, your buying power/margin is also referred to as your line.

Last edited by Nonpiker : 07-07-2005 at 12:39.
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