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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. |