Schoenfeld Securities (no idea how to reach them), offers some level of leverage above the 2:1. Supposedly it works something like, you put x , they put up 3x...you split profits 50/50, but its your percentage that suffers losses...thus you are essentially 3:1 leverage, if your account drops 33%, you're not out 33%, you wiped out.
With Reg T , by SEC regulation maxed out at 50%, i would assume firms must be doing it through some loan against equity agreement. Like I said, please dont take my word for it, I just havent had any expereinced with such firms. Its not exactly Yamner-style.
BTW...tough week with all execution systems. ECNS were just fine, yet SNET and SOES a total and absolute nightmare....SNET orders were supposedly back 2 minutes in a cue, not becauae of orders ahead, but because the NWII, (nasdaq's circuit) could not handle the volume...particularly wiht internet, semis and softare (the usually nasdaq) group. Phone based always works.
Regards,
Steve@yamner.com |
