Margin for shorting leveraged ETFs
Join Date: Oct 2013
Posts: 15
I live and trade out of USA. I use ETrade and I short UVXY. E*TRADE only allows me to short against 1/3 of my cash. Which sucks. I want more leverage.
Example:
If UVXY trades at 10 and I have $30k cash in my account I can only short up to 1000 shares.
Does anybody know how/where I would be able to short more shares? Another brokerage? Trade out of another country? If so, which ones?
Join Date: Jun 2010
Posts: 978
Interactive Brokers with a portfolio margin account. ETrade also offers portfolio margin, but it’s probably more restrictive and their margin loan rates are usurious. Options spreads will have lower margin requirements than a straight short.
That said, the fact that you had to ask means you probably shouldn’t be shorting. You don’t have an edge shorting UVXY.
Join Date: Aug 2021
Posts: 32
It's much easier to short individual stocks rather than ETF's. Have you considered that?
