Hi, I was wondering if anyone knows how large an account can get, generally speaking, before a broker will insist on slashing your leverage. For example, small traders with 1k to 10k in their account have access to huge leverage because it is trivial for a broker to leverage such small trades. I'm curious, since leverage is inversely related to one's account size, at what point your leverage begins to decrease. I know there are probably no "hard answers" to this since each broker uses their own discretion, however I'm assuming in the world of Forex their must be some general guidelines. Examples Account size of $10k - 1:50+ leverage no problem Account size of $100k - 1:50 probably not an issue? Account size of $1 million - ?? I'm also curious how things change if you move out of retail fx into using a prime brokerage, since they have direct access to such deep lines with the major banks (especially if they are a major bank) For example Account size of $10 million with Deutsche Bank's Prime Brokerage service - How much leverage is granted? I'm curious about all of this since the ability to profit aggressively drops off when you are forced to go from say 1:50 leverage to 1:25 or 1:10, so I'm wondering what is the maximum account size one can have and still have access to 1:50 leverage. I'm also curious what strategies exist (if any) that would allow someone to continue to sustain their profit levels/monthly % even if their leverage is drastically cut.
Exactly. Therefore, recommended you call your broker and ask that question to get exact answers considering forum members here are not your broker.
thats one large account, i would say usually for traders that trade a 7 digit account, you wont see them here in forum, last i heard about such accounts is a trader loosing close to 4 mil in 4 hours, and still it ment nothing. damn, why not just give that sum to me LOL
As for PB you can read this, it even has all the agreements linked: http://www.bloombergview.com/articl...no-time-for-former-goldman-partners-fx-losses They had 10 million as collateral with Citi and a trading limit of 300mm. So 30:1 and they payed $6 per million in fees.
They won't oblige you to do that, except lowering leverage on particular pairs or in particular trading situations. And it all comes to what the limit of the lot size you have in your trading platform. You won't be able to exceed that. On my Hotforex Premium I have 60 lots or 6 mn. position. Will you deposit 10 K or 10 Mn. with 1:500 leverage, margin requirement will stay the same.
This works only if you have used quiet a few brokers : your only solution is to split the capital between various accounts. When talking to them, ask straight what is the maximum leverage for a tiny account, then what maximum capital for this given leverage. I knew of one trader who had around 40 different trading accounts. No wonder he was sweating so much!
I dont know how large is large but a 10k account still seems a little too much for me, though i see some accounts lossing 6 digits damn thats crazy.
I see most broker offer VIP account (>10k $), the maximum leverage they offer is not greater than 1:500. They don't mention minimum leverage so I think 1:50 is possible. FxPro SuperTrader Account: 1:200 HotForex Vip Account: 1:300
yeah, some traders even trade more, but lets face it, for most of us, its still a long way before trading a decent 5-6 digit accounts