Trading arcade, margin, p/l?? -- noob question

[ikur1]

When joining an arcade, we lease the desk and equipments and charged a desk fee monthly right?

We get discounted round trip commissions

Also, do we have to put up the full margin requirement? Or can we leverage off them as well ? Say put up a portion of the full margin requirements..

since the positions are hedged, the margins are money sitting dead at the account

 

[fiftyfifty]

Don't have a lot of experience with arcades but sounds like the right idea.

Yes, you lease a desk/equipment and are charged a fee for this. You'll have access to their IT support and exchange memberships.

You should get more competitively priced commissions, should certainly be better than FCM's online. Cheaper rates for higher volumes.

While if you are intraday trading I would say it is normal to get some leverage on your initial deposit. It'll come down to what they are willing to offer you as an individual, what kind of record/history you have and how much of a deposit you've initially put down. They may well want a piece of the action if you are clearly undercapitalised for the risk you want to take on. I don't have a lot of experience with arcades so someone else should have a better answer relating to full margin requirement and using an arcade's leverage facilities.

Last point, don't know what you mean. What's hedged? Margin is put up at the exchange to allow you to be in the positions that you hold. If you are not using your full deposit then yes, some of your capital will be sitting at the arcade doing nothing. Actually it is probably earning interest but I can't be sure of this.

 

[charliechan]

more than likely, you will be given position limits rather than positions based on margin deposited. your money will earn no interest.