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Trade or Invest?

Paracelsus

Junior member
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If I have a sum of money, and a profitable trading strategy, is it financially better to trade that money on my underlying strategy, or invest it in my Darwin, at a leverage of 4, paying management & 5% performance fees?
 
That depends on your Darwin's profit.
I'm not sure whether you will get leverage x4, it depends on your country and national reulations, but usually you get leverage x3.

It also depends on your VaR, with a low VaR you will make more profit on the leveraged investor account than on the trading account.

For a sample calculation you should publish the estimated profit and the VaR.
 
I was also wondering. But for me it is mostly a question of taxes. When the money you make is small to average it is better to be a trader, but if you make lots of money, it is better to be an investor (you will pay a smaller tax). Technically, even when you invest in your own darwin, you are an investor in terms of tax, because any darwin is an asset by Darwinex that is independent from you.
 
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