IB's position limits

Discussion in 'Index Futures' started by illiquid, Sep 15, 2002.

  1. With all due respect, the amount of leverage on one contract with 5 thousand dollars is directly in proportion to the amount of leverage of 10 contracts with 50 thousand dollars.

    If there is no slippage concerns, then the only difference that I can see is that everything is 10x, but the risk percentage is exactly the same when compared to the total value of the account.

    This is why, till this day, I fail to understand why so many traders say that trading more contracts is different if the net worth of the account is also scaled to the leverage involved.
     
    #11     Sep 16, 2002
  2. def

    def Sponsor

    if scaled to networth it is not a problem.
     
    #12     Sep 16, 2002
  3. def,

    Thanks. That is what I thought. You da man.
     
    #13     Sep 16, 2002