CFD's : increased leverage?

Discussion in 'Forex Brokers' started by mephistos, May 13, 2011.

  1. mephistos


    Hello everyone,

    I've started trading forex and commodities with a CFD broker.
    I've noticed the disavantages that everyone mentions everywhere (slow, delayed, not 100% reliable connections, price information manipulated by spreads, and so on).

    But there is an important advantage that I noticed as well wich brings some advantages specially for swing trading. The fact is that if a trade is generating profits these can be used as collateral (margin) for new positions, even before the trade is closed and the profits "locked in" , therefore incresing overall leverage.
    Now, I would like to ask if a regular FOREX or futures broker accept this kind of "collateral" for opening new positions as well or if you need always actual cash.

    If this question is non-sense (for any reason) don't take me wrong.
    I just started now trading these kind of leveraged products.:confused: