Any limit on leverage?

Discussion in 'Forex' started by NeoRio1, Jul 28, 2008.

  1. Lets say a person has 100k. Can they make a FX trade with 100k with a 400:1 margin?
     
  2. cstfx

    cstfx

    I have only seen 400:1 leverage with brokers who are market makers/have dealing desks. And that leverage was for low balance accounts, because, quite rankly, they want you to crap out your balance. I don't believe you will find any dealers willing to extend that kind of leverage for account balances that high.
     
  3. Ignoring the obvious pitfalls of using that kind of leverage I believe there are MM's who will offer it on 100k account balances, and more (FXSol?)

    I've got to ask, why on earth would you want to use that kind of leverage, are you after some quick bucks with a win-or-lose-all strategy? Wouldn't a casino be more fun?

    Mind you I've always wanted to have a shot at making some crazy returns, maybe put 1k into one of those 400 or even 500:1 crapshoots and see what happens :)
     
  4. Done 777

    Done 777

    On ECN (like currenex) i don't think to open about 400 contracts ($40 mio) is problem.
     
  5. Surdo

    Surdo

    If you are asking this question, I suggest you try out your FXCM "sim" for a month and see if you can trade a mini account next with $1000 real money. Then post what you think of 400:1 leverage!
     
  6. ssss

    ssss

    with $1000 real money. Then post what you think of 400:1 leverage!


    In game ,where operator have not any edge ,best strategy
    by objective - great win (that is not equal objective minimum loss) minimum operation quantity with heavy bet .

    In this case high margin is +

    As example GFT offer for small capital 1:400 initial and 1:1600
    liquidation .

    that would approx 400 $ for one lot of eur/usd iniital
    and 100 $ for one liquidation

    By account with 1000$ take 1.0 lot of EUR/USD give 900$ or 90 point for stop loss by target 100 points profit

    3 operations with reinvestment in row 700%

    Try to met this profit target with great quantity of operation

    chance would multiple time's worster .
     

  7. I agree, I also think it would work if you got market direction right more times than you got it wrong and your wins were greater than your losses. But then your losses could be more than your wins if your wins were more frequent than your losers or your losers less frequent than your wins. If your wins and losses were equal then you wouldn't make any money but you might earn interest on the trade. If you didn't earn interest on the trade and your wins and losses were equal then you wouldn't make any money but you may get interest on your account balance. If the interest on your account balance was more than you could get elsewhere then you would be better off but if it's less then you wouldn't be better off because you wouldn't earn as much interest as you could somewhere else.
     
  8. ssss

    ssss

    Dear sir

    1. Your copy of ssss message have error ,whic hwas made from ssss by speedy typing and after that corrected.

    true text must be(as in original message after correction) ...
    #####################################

    that would approx 400 $ for one lot of eur/usd iniital
    and 100 $ for one liquidation

    By account with 1000$ take 1.0 lot of EUR/USD give 900$ or 90 point for stop loss by target 100 points profit

    3 operations with reinvestment in row 700%

    2. agree, I also think it would work if you got market direction right more times than you got it wrong and your wins were greater than your losses. But then your losses could be more than your wins if your wins were more frequent than your losers or your losers less frequent than your wins. If your wins and losses were equal then you wouldn't make any money but you might earn interest on the trade. If you didn't earn interest on the trade and your wins and losses were equal then you wouldn't make any money but you may get interest on your account balance. If the interest on your account balance was more than you could get elsewhere then you would be better off but if it's less then you wouldn't be better off because you wouldn't earn as much interest as you could somewhere else.


    autor have point of view that retail have no any edge !
    ######################################

    If edge exist ,as example 1.6% by casino in Motecarlo
    if forex that is spread for market -maker ,that by high intensity
    trading in 1-2 years mln $ can be made
    and that is case in casino and by market-maker in forex.

    Take 100 time spread ,each 10 $ each day and going to home
     
  9. I can't wait to see Cable's response.
     
  10. ssss

    ssss

    I can't wait to see Cable's response.
    ##########################

    Simple ,he would write that for retail possible to find edge through fundamental,technical analysis and market santiment

    After that he can present result some 1000% in one month
    and say that is profitable strategy .

    that is without ironie ,that can be the case by one operator from 10 000 ,but that is not fundamental,technical ,but only

    some kind of sequence which worked for this operator

    by another case ,that would another sequence.

    I.e. - only game theory ..
     
    #10     Jul 28, 2008