Hello, I am new to forex trading, I have a silly question. I opened account with Interactive Brokers, and account balance is $50K, today I tried to buy 100K of EURUSD, I thought this is just 2 times leverage, but my order rejected, seems like over leveraged. My max order is 50K, it that means 50K is already leveraged? Thanks for reply
It depends on the account you have, if you have a cash account they won't allow you to open a trade that is over your funds.
I don't think US residents are allowed to trade leveraged fx retail anymore. Thank your oh so wise leaders and regulators who have no qualm at ramping up the Fed balance sheet by a few trillions and filling the pockets of the elites yet try to tell you that risking a few hundred or thousand dollars on currencies is too dangerous for you. But then you can buy limitless alcohol and drink yourself to death. Or spend all your savings on lottery tickets or gamble it away in Vegas. Question: which one is the real shit hole country. What you are allowed, however, is playing the good minion you are, pay your little mortgage on a low standard and quality home, pay off your auto loan on the big ass truck some snake oil salesman talked you into, and pay your income taxes, sales taxes, dividend taxes, capital appreciation taxes, property taxes, inheritance taxes and interest income taxes from your shit level low income job. Lol, and people are yapping and fighting each other on politics. People truly on average are idiots. They simply don't get that they are played for suckers.
This is What I got from IB Customer service: "US residents are restricted to trade Leverage forex" " There would be a Leveraged Forex balance if your account held a net short absolute value amount in terms of your account's base currency. In order for a "Forex" transaction to be considered leveraged there must be: 1) A short balance in a non-base currency position 2) The sum of all short non-base currency positions (absolute value in base equivalent) must exceed the sum of all positive non-cash asset values 3) The sum of all short non-base currency positions (absolute value in base equivalent) less the sum of all positive non-cash asset values exceeds the account's Net Liquidation Value. For example, if a margin account held only USD 100,000 and it bought EUR 25,000 worth of a EUR-denominated stock, then IBKR would loan the account some EUR cash to pay for the stock purchase. That negative EUR cash alone does not create a Leveraged Forex balance as the total absolute value in terms of the account's base currency would still be positive. IBKR margin accounts that do not have approved "Cash Forex" trading permissions can trade in products denominated in non-base currencies, but a new order would be rejected if a non-ECP or an account without approved Cash Forex permissions were to hold a Leveraged Forex Balance after the previewed order executed."