I think you would be crazy to use that 200:1 anyways. I get max 30:1 and don't feel comfortable using more than half of it. 30:1 is still way more than you need.
the risk lies in the leverage ... not in the margin the higher the margin the lower the risk of "overtrading" better try the CFTC-regulated CME/GLOBEX currency futures first imo ... the broker commissions are easily offset by narrower b/a spreads
Perhaps, a bit off topic, but where are good places to get a leveraged account (4:1 overnight or more) for equity and/or option trading for a non-licensed day/swing trader?
if you have the minimum 25k most places will give you 4:1 in equity, if not you would have to go to a prop firm, you can look at the broker ratings on the home page to see some of them.
Hey bro...what has been said is true in alot of ways...with futures or forex, the money/contract is only a bond. So, it's not really that important, save that now, if you are not making $, you will only be able to trade down to $200 instead of $50 before refilling your account. With $1/pip, you have a sufficient runway to learn on first without burning yourself too deeply.
imo, one thing also important is a comparatively small amount of deposit could not support a reasonable fluctuation of price that would stop you out easily - a very effective tatic being offered by many market makers in FX!?
I would think it all depends on how many lots, the defined amount of each lot, and what maximum % loss of capital per trade.
Corvus, You're absolutely correct. I thought it out and did the math and it doesn't matter if it's not 200:1. I actually trade 10:1 or sometimes 20:1 depending if I have 1 or 2 mini lots open. I realized that if I really need the extra margin to give my positions more wiggle room, it means that my entry sucks! LOL! Incidentially, I talked to the Refco customer support representatives and they told me that they haven't heard from their supervisors that the margin requirements are going to be raised to 2%. It's less than a month before the Dec 1st deadline and I would think that they would of sent out an email 30 days before any impending changes. So since they have not (yet), the margin for mini accounts might stay at 0.5%. DNAJ65000