andrewthediceclay
01-01-2005, 06:07 AM
I need over 10k to day trade options and stocks and need extra capital to make more money, will a bank loan me money for this purpose?
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View Full Version : will a bank loan you money for day trading? andrewthediceclay 01-01-2005, 06:07 AM I need over 10k to day trade options and stocks and need extra capital to make more money, will a bank loan me money for this purpose? baserunner316 01-04-2005, 07:12 AM are you nuts?? what if you lose it?? if you have a proven history that shows you are a good trader present them with the records otherwise I doubt it. this can also trash your credit big time if you don't know what your doing. T2163 01-07-2005, 08:16 AM Just ask for a personal loan and they want ask u questions on what you going to do with it. U can have A1 credit but the intrest rate is still going to be high. NewPraizecom 01-10-2005, 09:21 AM Probably not. If you have some form of collateral, like a house, you can take out a loan against that but unless you have outstanding credit and a great working relationship with your bank you probably won't get a loan of that size. You can try sites like prosper.com, which is a peer to peer lending site. Good Luck! Mad_Theorist 01-13-2005, 10:26 AM Not unless they are very, very stupid...! :) Day trading is a very risky business even if you have lots of computers doing it for you and have absolutely upto the minute reports. Can't be done for example based on Yahoo Finance as that's 15 mins behind. But have you worked out if the interest on 10K would actually addup to more than you could make as that's risky? Also for that amount you'd need a secured loan so risk a lot like a house. Very, very bad idea especially currently. ssupertech 01-16-2005, 11:31 AM Brokers will let you purchase on margin, you must supply 20%. but if you do not know this then you should not be a Day Trader. You need to study the investment industry before investing. Harbinger 01-19-2005, 12:36 PM The bank will give you a personal loan if your credit history is sufficient. That said, the profits from day trading are quickly eroded by commissions and taxes. rh7295 01-22-2005, 01:40 PM You could get one, not too much, but with a high interest rate due to the risk of loss. Kiker1135 01-25-2005, 02:45 PM No. A bank will not, as you need something to legal tie the funds too...even with a signature loan, you need to explain the reason for the loan (this is to prevent money laundering). Your only option in this case is a Margin Account through your broker. But since you trade options, you would already have a margin account, which means you know you do need to maintain equity in the account. There is an alternative. BUT, I wouldn't recommend it.You could engage in a Carry Trade. Again!! I do not recommend you do this for Day-Trading options or stocks! You short a currency (the JPY is pretty popular). Just like shorting a stock, you get a credit. Since Forex is not regulated by the same Margin Rules as Equities, you can get 50K for a simply $500 account. With that credit, rather than buying Bonds with a higher interest rate than the rate of the shorted currency (Fed rate is 4.25, so you could get a bond around that rate, which JPY rate is .5%..you profit from the difference) you put that money into your options account. You need to be careful that you leave some room in your Forex account, as you do not want a Margin Call on this. And you need to make sure you monitor the currency market to make sure that the JPY's flat...although if it is dropping, you have the added bonus of making money there too.I am not suggesting you do this, but just saying that there are possibilities out there. Just don't use this one, as it you need to be aware of what you are doing. |