Margin question

Hi,
If I buy a bull ETF and short its bear ETF in a margin account,
what would be margin effect? Could I hold very big position (much bigger than my actual buying power)in both ETF?

 

Yes, in theory, but why would you do this? You would have a perfectly hedged position that would consistently lose money....

GAT

 

No.
I meant I short a bull ETF and short its bear ETF.

 

If he buys the bull symbol and shorts the bear version he would not be hedged.

 

You are right.
This doesn't work.

 

OK. Which symbols? And what type of margin account, portfolio margin or Reg T?

 

Reg T.

 

I'm a muppet. Didn't read the post properly.

GAT

 

No extra buying power under Reg T for this strategy.