Banks who allow using your assets as collaterals for trading (stock exchange)

Fabian

Hi all there,

I was told there are banks which do accept you to trade (operating in the stock exchange) using your assets as collaterals.

I hope it is clear: "as collaterals" means that I do not need to move my money from my savings account when I buy/sell stocks but I will be credited the profits or charges the losses whenever I loose/gain with my trading operations.

As I am not a millionaire (I believe if I was I would have no problem whatsoever), I wonder whether any of you knows a bank in UK which allows to operate in this way.

Thanks for any reply.

Cheers,
Fabian

cheerfulcat

Hi, Fabian,

You can use shares which you already own as collateral when trading derivatives but AFAIK no broker will allow you to buy shares on credit, though TD Waterhouse offers extended settlement ( T+20 ) which might do the job?

Fabian

what's a T+20? Thx

cheerfulcat

Trade+20 working days - it's the time you have to settle the account ( pay for the trade ). Normal settlement these days is usually T+3.