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  Home  >  Support Center  >   Supplemental Leverage
 
 

Supplemental Leverage:  How it Works

Through sub-contracted trading accounts, both licensed and non-licensed equity traders are able to access professional trading leverage up to an equivalent 30:1 intraday and 6:1 overnight.  Sub-contractor accounts effectively utilize a combination of trader capital and private firm capital to reach an amount of equity equivalent to twenty five percent of the total buying power allocated to the trader's sub-account.

*All sub-contractor accounts SIPC-insured
 

Calculating Supplemental Leverage:

 

Intraday leverage or buying power is determined based on the total amount of trader equity at the beginning of each trading day and is allocated to your account by the designated broker-dealer representative.  Buying power multipliers, (the number by which capital is multiplied to obtain intraday buying power), is pre-determined during the account setup process according to client requests and various qualifiers.

For example, Trader A opens an account with $5,000 and is approved for a multiplier of 10x.  This trader would receive the equivalent of $50,000 ($5,000 x 10)  intraday buying power for all equities trading activity and up to 6 times their capital for overnight trading.

In effect, trader capital is supplemented by firm capital provided by our affiliate private capital group's.  Trader's receive authorization to trade sub-contracted accounts owned by these private capital groups via a Limited Trading Authorization provided by the clearing firms.

Leverage for sub-contractor accounts is determined by several factors including:

  • Trader experience level and trading style

  • Initial amount of risk capital

  • Diversification of positions and % of overnight holdings

All sub-contractor accounts receive a minimum of 10:1 intraday buying power and 4:1 overnight buying power.  However, based on the above factors, traders may receive up to 30 times intraday and 6 times overnight equivalent buying power.  All buying power determinations are made by WTC and our affiliate private capital groups.  Buying power is adjusted and allocated to sub-contractor accounts by the designated broker-dealer representative on a daily basis.  Please review our Trading Services section for complete details pertaining to buying power allocation.

 
Benefits of Supplemental Leverage:
 

This type of supplemental trading leverage can be extremely beneficial to those traders who wish to trade actively on an intraday or overnight basis, but do not wish to allocate the $25,000 minimum required by the NASD or do not have the funding to open a full "daytrading" account.

*WTC and our affiliate private capital group's highly recommend that all traders review NASD "Daytrading" regulations and Risk Disclosures prior to live trading.

 
*Neither WTC, nor our affiliate private capital groups are broker-dealers. Our firm neither benefits from, nor receives commissions from sub-contracted trading accounts.  WTC acts as a designated consulting agent acting on behalf of both independent contracted traders and affiliate capital groups when creating customized pricing structures with selected broker-dealers.

Primary Benefits to Sub-Contracted Trading


 

Sub-contracted trading offers a variety of powerful benefits to individual traders, money managers, trading groups, and proprietary traders, including:

 
  Low Initial Capital Requirements.  Full Daytrading capabilities with just $5,000.
  Increased leverage; up to 30 times intraday and 6 times overnight buying power.
  Full access to US Equity Markets, including OTC, NYSE, Penny Stocks, Bulletin Boards
  Completely customized pricing structures based on either per/share or per/ticket schedules.
  Remote trading access from anywhere in the world via Internet connections.
  Maximum accessibility to accrued profits with customized withdrawal scheduling.
  Access to multiple Direct Access Trading platforms, including Realtick and InstaQuote.
  100% payouts on all trading activity.  Sub-contracted traders keep every penny they make!
 
Getting Started / Frequently Asked Questions

 

WTC works closely with our private capital affiliates to simplify the account application and setup process.  To apply for a new sub-contractor account, simply checkout our Getting Started page, select a direct access trading platform, and complete an online sub-contractor application.

With additional questions, please review our FAQs or contact a WTC representative at 866.473.5069 or send email to info@worldwidetradingcapital.com.

 
 
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WorldWide Trading Capital is not a registered broker-dealer and neither benefits from, nor receives commission dollars related to trading accounts.  WTC works in coordination with private capital groups that provide licensed and non-licensed clients with access to sub-contracted trading services.  Our firm and our network affiliates strongly recommend that all clients fully read and acknowledge all SEC risk disclosure statements available on our site and our affiliate broker-dealer websites prior to engaging in any live trading activity, and acquire a solid understanding of the risks inherent in active "day" trading.