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 Forex V6

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sleepwalker
post Jan 31 2010, 12:31 AM

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QUOTE(VinniJeyaa @ Jan 30 2010, 11:22 PM)
The higher leveraged account will get margin called first, so its B.  High leverage is like a double edged sword, while it gives gains at a faster rate, it also kills the account faster laugh.gif
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Wrong answer. Since the question stated that both accounts open 1 mini lot (USD1 per pip is only 1 mini lot), account A will need twice the margin as compared to account B. Higher leverage does not make the account gain faster since 1 mini lot will return USD1 per pip, irrespective of leverage. The higher the leverage, the less margin required to open the order.

However, if you look at it at a margin perspective, account B can open 2 mini lots compared to account A for the same amount of margin since it has twice the leverage. If you look at it from this perspective, then account B will get margin call faster than account A since it has open 2 minis and each pip will be USD2 instead of USD1.

Understand?

Most people misunderstood the nature of leverage. Higher leverage does not increase the risk if you are opening orders in the same lot size as a lower leverage account. The risk comes in when you open MORE lots because you have more margin due to higher leverage. The risk is not in the leverage but the number of lots that you open.

This post has been edited by sleepwalker: Jan 31 2010, 12:34 AM
sleepwalker
post Jan 31 2010, 10:25 PM

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QUOTE(Sham903n @ Jan 31 2010, 05:49 PM)
maybe someone just mix up 100:1 vs 1:100..
I would suggest you take 1:500 or more.. less likely to wipe..  but still depends on your volume/lot size..

smile.gif
100:1=100=1000%
1:1=1=100%
1:10=0.1=10%
1:100=0.01=1%
1:500=0.002=0.02%d

(1:500) if 1 movement effects 0.02% of your account.. and (1:100) 1 movement affects 1% of your acct.. which one is riskier?
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That is not how you express leverage. Do not mix up leverage with lot size. There is no leverage below 1:1. Below 1:1 is called unleveraged and you don't have that in forex.

I repeat. DO NOT MIX UP leverage with lot size. Whenever somebody talks about risking no more than 2% of your equity/margin, they are talking about lot size. That has nothing to do with leverage. Those who don't understand, please read my reply above. If you still don't understand, then go to babypips.com and learn. If still don't understand, then don't trade.

If simple elements like leverage is beyond your comprehension, you will have no hope to read the markets and make winning decisions. You'd just join the 95% people who lose in forex.

Added on January 31, 2010, 10:27 pm
QUOTE(rstusa @ Jan 31 2010, 09:52 PM)
I personally agree with 1:500 provide less risky, some ppl will think 1:100 less risky because they think this is the only way to control the trader open smaller lot size, but this is just mentally control, if you got a trading method with discipline implemented, your trading way is fixed, so automatically your lot size are fixed, then risk the account with 0.02% are more reasonable than 1% risky.
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You are mixing up leverage with lot size. Leverage does not increase the risk. The size of the order creates the risk.

Added on January 31, 2010, 10:28 pm
QUOTE(yiivei @ Jan 31 2010, 02:20 PM)
i wander how do most of you trade witout the basic understanding of leverage? no wander so many ppl get margin call so often..
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Exactly. They form the majority of the 95% of the people who lose in forex. That is good for us since somebody has to lose to the broker for the broker to pay us our winnings. If most of us win, the brokers will all be out of business.

This post has been edited by sleepwalker: Jan 31 2010, 10:28 PM
sleepwalker
post Jan 31 2010, 11:59 PM

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QUOTE(rstusa @ Jan 31 2010, 11:32 PM)
As you mentioned the size of the order, if we use 1:100, the margin we used are larger than the 1:500, although lot size fixed but margin used increased. Eg: we open 1 lot of EURUSD = USD100 margin used for 1:100, but for 1:500 of 1 lot EURUSD = USD20 margin used only. Thus, if the lot size fixed, let's say in my method i only open maximum 10 lots in a single time, so 1:100 i'm risking USD1000 margin while 1:500 i'm risking USD200 only.
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Are you sure you are a trader? You lack even the basic understanding of a margin call. You are giving me a margin call example. For your example above, if you get a margin call, you get back your USD1000 for the 1:100 account and USD200 for the 1:500 account that was used as a margin for your 1 lot. You cannot lose the USD1000 or USD200 as they are your margin and not your risk. So where is the risk there? Good gosh. You have no understanding of money management. You seem to have mixed up risk with margin here.

Guys, please do get back to your books and fully understand what trading is all about before even trying. I'm not saying that you will lose if you don't know everything but you'd definitely win more if you do. Part and parcel of being successful, not only in forex but also in life.

Added on February 1, 2010, 12:02 am
QUOTE(Sham903n @ Jan 31 2010, 11:48 PM)
yeah I know (1:500) with 0.02% margin i can hold a position as if I have 100% margin
well.. I still say 1:500 is less risky than 1:100...
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I'm still trying to figure out what your leverage has to do with your 2% risk position? I think you got it mixed up the same way as rstusa.

This post has been edited by sleepwalker: Feb 1 2010, 12:03 AM
sleepwalker
post Feb 1 2010, 12:24 AM

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QUOTE(Sham903n @ Feb 1 2010, 12:09 AM)
volume size..
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Then you cannot say that the leverage provides less/more risk. I've been saying this all the time. It is the size of the position that determines the risk. Your leverage determines the maximum order size but not the minimum. You are not forced to buy more lots because you have leverage. That decision comes from you therefore leverage does not determine your risk. It is you who determines your risk.

If there 2 traders with 1:500 and 1:100 leverage, both can open a micro-lot (minimun size with most brokers) and have the same amount of risk, which is USD 0.10 per pip. How much you want to risk is up to you and not the leverage. In fact, with poor money management, the 1:500 leverage becomes a hazard to you because it allows you to open even more orders, hence increasing your risk.

One of the rules of being successful in forex is not to over-leverage. You trade within your means. If you need a higher leverage to trade, it means you don't have enough capital. Remember, leverage works both ways. You can win more but at the same time you lose just as much.
sleepwalker
post Feb 1 2010, 09:15 AM

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QUOTE(rstusa @ Feb 1 2010, 08:38 AM)
Let me refresh again.

But I still don't understand why everyone disagree the CFTC changing the leverage to 1:10, if less risky for lower leverage, why so many trader disagree it?
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Why? Because a lot of people out there thinks that leverage can replace capital. As with all investments, the lower the risk, the lower the returns. They are not complaining because it is becoming less risky. They are complaining that they'd need more capital to make the money. If they truly want to be safe, they can put their money in banks and earn the pathetic interest and without risk.

They want the risk. They want the high returns with small capital and forex is the only place they can play with this kind of risk. They don't want that taken from them.

This post has been edited by sleepwalker: Feb 1 2010, 09:17 AM
sleepwalker
post Feb 2 2010, 11:51 AM

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Aussie Aussie Aussie.. oi oi oi.. 80pips in 1 min. Thank you.
sleepwalker
post Feb 2 2010, 06:22 PM

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QUOTE($Dream$ @ Feb 2 2010, 06:16 PM)
drool.gif

but can kill u in second..
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Another misunderstood trader. How would that kill him in a second? Explain to me the difference between a 1 micro-lot with 1000:1 leverage and a 1 micro-lot with 100:1 leverage and how the 1000:1 micro-lot would be killed in a second.

If you can't explain, don't bother coming back. We don't need this kind of spam in this topic.
sleepwalker
post Feb 2 2010, 06:33 PM

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QUOTE(forexjr @ Feb 2 2010, 05:48 PM)
sifus, i already started my live account with only usd 100. i did make some profit of usd 14 during my 1st 2days trading... but i lost around usd 10. but today i did make some usd 8 again..

where do you think i should improve.. i am using leverage of 1:30.
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Wow.. you must be making hundreds of pips in 2 days. With an account of USD100 and only a 1:30 margin, you'd be buying only micro-lots and earning USD0.10 per pip. It'll take you 140 pips to make USD14 (or 70 pips if you were playing the cheaper currencies at 2 micro-lots). Of course these are just my rough calculations based on a simple 1:25 leverage but close enough. That's a lot of pips for somebody just starting out.

This post has been edited by sleepwalker: Feb 2 2010, 06:35 PM
sleepwalker
post Feb 2 2010, 06:47 PM

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QUOTE($Dream$ @ Feb 2 2010, 06:35 PM)
if u start with capital 1k, use 1:1000 means 100/pip, it take 10 pips to kill yr acc..
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You definitely got it all wrong and you have not answered my question. Nobody asked you to be so stupid to use all your leverage to open such a big order. Also, there is no such thing as a 100/pip. One standard lot will give you 10/pip and you need 10 standard lots to get 100/pip.

Even though you have the leverage, you don't need to buy 10 standard lots. You don't even need to buy 1 standard lot. You can play 1 micro-lot and enjoy the big free margin that you'd have from the higher leverage.

Seems like we have another person who does not understand the idea of leverage.

Everybody.. repeat after me.. "My leverage does not put me at risk. My leverage does not determine my order size. It is my stupidity that I over-leverage and open an order that my capital cannot support."

Repeat.
sleepwalker
post Feb 2 2010, 09:44 PM

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QUOTE(chanlf @ Feb 2 2010, 09:09 PM)
there is more than 70 pips different, that y need to get the clarification from those real acc holder whether they experienced the same thing. Not only Ej, but also GJ.
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My FXDD real account shows 127.40.
sleepwalker
post Feb 2 2010, 11:06 PM

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QUOTE(chanlf @ Feb 2 2010, 10:01 PM)
Any idea why the different is so much?
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Those are historical data. If you want to compare the brokers, you have to do it real time. Anything after that, you are just downloading historical data in the form of a text file. Accuracy is not guaranteed in historical data.

As we have discussed this many times, you are dealing against the broker and not the actual market. The agreement is between you and your broker and you cannot use the feed of other brokers to compare. You get what is fed to you from your broker.
sleepwalker
post Feb 3 2010, 09:09 AM

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QUOTE(forexjr @ Feb 2 2010, 07:50 PM)
i already lost 10 usd but i gained back... actually u should give a bit of advise on how to maintain it instead  of demoralised me.. anyway you should have more experienced than me...
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I'm sorry but we are not here to give free advice. This is not forex tips and hints. This is not a computer game where you can get a walkthrough guide all way to end game. No. This is real life. We learn by asking questions. This is not Malaysian high school where you sit there and get spoonfed with information. Nothing annoys us more than leeches who hangs around forums contributing nothing but expecting everything.

You ask the right questions and you'd get your answers. If you want to tell people of your success, then share it or shut-up. There's plenty of forex wannabes around and the problem is not restricted to this forum only.

If you want to share your first few days of trade that made you hundreds of pips, post your statement here and only then people can help you analyse and then give advice on where you went wrong on the entries that you lost.

Added on February 3, 2010, 9:21 am
QUOTE(forexjr @ Feb 2 2010, 06:27 PM)
oanda only allowed maximum 1:50. i am using 1:30. anyway got any broker giving 1:1000 ka?
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The leverage is getting higher but I think at this moment 700:1 is the highest. The 1000:1 was a figure of speech to highlight the fact that the higher the leverage you have, the easier it is on your margin. Then again, he could have found a 1000:1 broker and not telling us about it.

This post has been edited by sleepwalker: Feb 3 2010, 09:21 AM
sleepwalker
post Feb 3 2010, 02:12 PM

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QUOTE(MNet @ Feb 3 2010, 11:10 AM)
Yes i also received bulk of PMs each day.
I did ignore them

Broker offer 1:1000 leverage
https://www.exness.com/news/article/Leverage1000
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Another Russian based forex broker. Actually we should not even call them brokers since they do not act as intermediary as we don't buy/sell currencies with the exchange. Ahh.. Russian forex brokers.. popping out like mushroom.. they are everywhere.
sleepwalker
post Feb 4 2010, 03:47 PM

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QUOTE(z2forex @ Feb 4 2010, 03:01 PM)
If the trading strategy suits you then go for it. Sometimes I just put my SL at 500 pips then I use trailing stop when it goes in my direction. I've not used a tight SL for months now. It seems to be working nicely for me so far smile.gif. Again, your entry points are very important. If you are very confident with your trade, you might not need SL at all.
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I only open trades when they are going my direction and initial SL is only set just incase I lose internet connection. After that it is moved to BE+1/5 in the next few minutes. So you can say that I hardly have any losses since most ends up as BE+1 if the trade goes against me.

If you are unable to open a trade that goes in your direction, then you are opening it the wrong time or not reading the markets properly. Remember, this is not stock market. You don't just buy your share and hope it goes up. YOu place your entry at the correct opportunity in the trend that is going your way. You don't put an order and cross your finger hoping to win.
sleepwalker
post Feb 5 2010, 10:51 AM

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QUOTE(mon444 @ Feb 5 2010, 06:20 AM)
can i know what leverage r u using ... 100:1?

Added on February 5, 2010, 6:25 amuser posted image

what is the leverage for above trade
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What has leverage got to do with the above trade? You can see that he has opened 1 mini lot which returns USD1 per pip.

If his leverage was 100:1, that would cost a margin of USD143.60. If leverage is 200:1, just half the margin.
sleepwalker
post Feb 5 2010, 01:56 PM

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QUOTE(myvi5949 @ Feb 5 2010, 11:36 AM)
You can control the lot size to either standard/mini/micro in MT4 demo platform.

But I dont see where u can control the leverage.. 100:1, 200:1, or 50:1

Do we only have the option to determine leverage once we open up a LIVE account?  icon_question.gif
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You can't control the leverage in the MT4 but you can ask for your leverage to be lowered. That depends on your broker. You cannot go above the max leverage set but can request for it to be lowered.

Added on February 5, 2010, 1:59 pm
QUOTE(bulkbiz @ Feb 5 2010, 11:04 AM)
can earn fast, also can blow ur acc fast
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That only applies if you do not have enough capital. As long as he is playing the same risk/reward ratio all the time, there is nothing to work. It becomes a problem if he wins on orders with USD1/pip but loses on orders with USD5/pip. That would be really bad risk management.

This post has been edited by sleepwalker: Feb 5 2010, 01:59 PM
sleepwalker
post Feb 12 2010, 11:00 AM

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QUOTE(Aloong @ Feb 11 2010, 04:24 PM)
I reciv it this morning.

NEGATIVE TRANSFER NOTICE PURSUANT TO NFA RULE 2-40

FXDirectDealer, LLC (“FXDD New York”) is providing this notice to you pursuant to NFA Rule 2-40.  FXDD intends to transfer your account to FXDD Malta Ltd, (“FXDD MALTA”) a fully licensed and regulated Category 3 Financial Services Firm registered with the Malta Financial Services Authority located in Valletta Malta (www.MFSA.com.mt ).  FXDD MALTA will enjoy cross border passport privileges with all other EU countries.

FXDD New York is taking this action so that your account will be regulated under the supervision of the Malta Financial Services Authority where your funds will be held in a segregated customer account and not comingled with the capital of FXDD MALTA.

FXDD New York intends to transfer your account as of the close of trading on Friday, February 19th 2010.  Your open positions will be closed as of Friday, February 19th 2010 and will be reopened in your FXDD MALTA account at the same rate. There will be no change in your account value.  FXDD Malta will be the direct counterparty to all trades in your account and will service your account going forward.  FXDD New York will no longer be the counterparty to your trades or be responsible for servicing your account.

FXDD MALTA’s address is:  K2, First Floor, Forni complex, Valletta Waterfront, Floriana, FRN 1913, Malta.  If you have questions regarding your account or FXDD Malta you may contact the Operations Manager, Mr. Mark Zammit, by emailing him at support@fxdd.com.mt or by calling him at (+356) 2013-3470. 

YOU ARE NOT REQUIRED TO TRANSFER YOUR ACCOUNT.  IF YOU DO NOT WANT YOUR ACCOUNT TRANSFERRED YOU MUST SEND AN EMAL TO: transferoptout@fxdd.com WITH YOUR ACCOUNT NUMBER(S) IN THE SUBJECT LINE BY 5pm EST on Friday, February 19th 2010. YOUR FAILURE TO SEND THE OPT OUT EMAIL WILL RESULT IN YOUR ACCOUNT BEING TRANSFERRED.

IF YOU WANT YOUR ACCOUNT TRANSFERED YOU DO NOT HAVE TO DO ANYTHING. YOUR ACCOUNT WILL AUTOMATICALLY BE TRANSFERED. YOU CAN CONTINUE TO USE YOUR CURRENT META TRADER SOFTWARE, OR DOWNLOAD THE NEW ENHANCED MT4 PLATFORM HERE http://www.fxdd.com/software/malta/mt4malta.exe  YOUR  ACCOUNT NUMBER,  LOG IN IDs AND PASSWORD WILL NOT CHANGE.  CLICK HERE to review the terms and conditions of the FXDD MALTA customer account, risk disclosure and trading rules.

If you have questions you may contact FXDD New York by calling the customer service number you currently use when calling FXDD and you may email questions to the email address you currently use when emailing FXDD.

YOUR POSITIONS AND ACCOUNT WILL BE REASSIGNED TO A FIRM THAT IS NOT A MEMBER OF NATIONAL FUTURES ASSOCIATION (NFA), IS NOT REGULATED BY NFA, AND IS NOT REQUIRED TO COMPLY WITH NFA'S RULES

After your account is transferred it will be carried on the books and records of FXDD MALTA. FXDD MALTA operates pursuant the rules and regulations of the Malta Financial Services Authority, the Malta Investment Services Act of 1994, the Prevention of Money Laundering Act and all other applicable EU Directives for such Financial Services Firms.
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It's about time to show NFA who's boss. I want my 200:1 leverage back.
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