How does margin work?

Discussion in 'Forex' started by DannyBens, May 15, 2005.

  1. I assume I'm "the other guy"? If so what I say about Refcofx accounts and margin calls is 100% correct. I trade a live account.

    A 150K position, with no stops, will cost you $750.00. If you have $800.00 in your account maximum loss is $50.00. If you have $2000.00 in your account maximum loss is $1250.00. The amount of dollars you put into your trade will not be lost.
    #11     May 15, 2005
  2. I'm not saying you are incorrect, it's just strange as stops are not guaranteed anymore. This trick would effectively allow you to place guaranteed stops.
    #12     May 16, 2005
  3. Grrr.... what do you mean by "stops are not guaranteed anymore"? Many brokers claim that stops are honored as they are, and a handful of forex guides claim this as well - are you saying that these brokers/guides are incorrect? Based on what, if I may ask? These are disturbing news for me...
    #13     May 16, 2005
  4. Some brokers do not guarantee any stop, slippage is always possible. Other brokers guarantee stops, but make an exeption for volatile market conditions (=when the market gaps).

    See the * on the page below for RefcoFX

    I believe 'volatile market condition' is defined totally at their discretion, but you'd have to follow up on the Client agreement to find out for sure.
    #14     May 16, 2005