Daytraders After Market Lounge 10th October, page-33

Thanks for posting that Dazzle.

An important thing which that report leaves out is where your equity needs to be kept with each broker trading account.

When markets (or your broker) turn south, then you can lose everything - even in a segregated account.

There has been some chatter on the DT thread lately about settlement periods and so forth. If you are settling in less than t+2, then you probably aren't trading shares, you are probably trading some sort of derivative on the share, such as CFDs. And these are probably being settled into a trust account or similar.

This will present with hidden risks and costs.

The one I bang on about is on a semi-regular basis is counter-party risk. This is where you are actually trading with the broker (as with some CFDs).

If the broker goes bust ( or liquidates). You got nothing. And it can tie up your money for years.

Just a caution. Probably should have edited some of that, but too lazy.



MFx