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Old 22-07-2005, 23:25   #16
Jack_Jones
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Re: Interest rate differentials

Hi, i agree 400:1 leverage is scary but if you have the capital... say 100000 why not use it just leverage the total amount down. So the $200 would give you a $80000 position? I fail to see a problem here so if someone can point it out it'd be appreciated.

I guess the problem comes when people mismanage this type of trading.

Although if I had a $100000 to trade with I'd be looking at getting a "real" market account. I believe these start at $50k up.

Either way it's high risk so I wouldn't be putting the life savings into this kind of investment

Also you could free up the $100k by using half for the trading and putting the other half somewhere safe. So if needed you can just trans the money to the trading account.

Last edited by Jack_Jones : 22-07-2005 at 23:35.
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