For example in futures. If I want to open positions using unrealized profit can I do so. I am using the Trading Technologies demo, and it is allowing me to do this. Would it be the same for live accounts?
As long there is a higher net number in your account then the margin you need to open up a position, you can open positions.
Oh... My initial response to OP was : Illogical. But this info showed up. Demo, without warning, twists people into thinking that something is possible, while it shouldn't be, yet technically it is and - only for the worse. @Con1991 if you're beginner - avoid leverage like a plague.
No,he should try it out. He is in DEMO mode, so no harm done and maybe he will find out why always go to the limit is not a good idea.
It is illogical, and that is why not many people know it or even do it. But when you for example trade a future contract with an overnight margin of $2500 dollar, you can open a new contract when ever your account grows by $2500 dollar. So, if you know what you are doing, you could build up positions with market money. The big problem is margin calls, if your positions goes against you. If your account drops below the margin requirments, your broker will liquidate your positions and you hold the bag for any losses that comes with it.
Yes for Futures, because you are not paying for the 'real' value (nominal value) of the contract, but only a margin. For Stocks and options, you cannot.
That's why adding to winners on a position that's marking up positive account equity is such a powerful tool. And conversely, it's why adding to losers just compounds losing.
As a footnote, until you "realize" your profit (close it), your FCM will not allow the entire positive open position MtoM equity to be used as margin.