when i was learning and looking through various resources i found firsttrade's explanation particularly useful because of the visual aid: https://www.firstrade.com/content/en-us ... quirementscalvin111 wrote: ↑Sun Jan 24, 2021 2:08 amSteve Reading wrote: ↑Thu Aug 27, 2020 2:29 pmMy taxable account is leveraged 2:1 at the moment. It's all invested in stock ETFs as well. No futures.ScubaHogg wrote: ↑Thu Aug 27, 2020 12:11 pm OP,
This thread has grown to 21 pages, so I apologize if this is answered elsewhere. Would you mind posting a rough snapshot of how you are currently executing your leverage (Options at IB, Futures at IB, maybe mixed with the Excellent Adventure?) and how much leverage you are currently holding?
Thanks!
I achieved this leverage via margin at IB*.
-- Apologies, and I am still learning this and went thru lots of pages. I am interested in following this strategy. So can you please help simplify it.
If I have 100K cash in my taxable account, so do I just buy 200K worth of SPY or VTI or something in my account ?
In this case I will be leveraged 2:1. Correct ?
For borrowing 100K, I will pay margin interest on it (whatever it may be at fidelity - my broker) ?
Is this it ? or what else do I have to do
but yes, your balance goes negative, you pay interest (and goes negative a little more). with everything being digital these days, for me it was a bit freaky how "easy" it was to just buy positions with money i didn't have. i can totally understand how this could ruin people if they are not careful.