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Thread: How much capital is needed?

  1. #1

    How much capital is needed?

    Hi,

    So I have been trading nothing but Binary options and now I'm getting into Forex. I am currently utilizing FXCM demo account but I have a few questions that I was wondering if that community could help me answer.

    1. What is margin call and how can it be used? I've observed the 1:1, 25:1, 50:1 and all in between. What's the best one to use?

    2. In my understanding, in case you have a little account balance and your transaction goes too far from the gap, it auto sells it, just how exactly does this work?

    3. My end goal is to get a account balance to have a transaction up to -35 pips max with no auto settling. What type of balance and leverage do I need to achieve this?


    Except for its Rookie talk and thanks in advanced!

  2. #2
    As a general rule the greater the leverage the better, attempt to loe a broker that provides 1:100 or more...1:50 can be a pain in the ass if you are scalping or employing a high risk egy. . .Regarding -35 pips query, that may be accomplished with any kind of equilibrium, it is only a ratio which you can always calculate (split your balance from the pip value of the contract you opened to know how many pips your account can withstand prior to the margin call and leave some space for your margin as it will consume a part of your balance after a live trade was executed). .You can start trading as little as 10 dollars (offered by some brokers) but I do not recommend trading with anything less than 200-300 dollars though. Make certain to visit Babypips as Zinot mentioned to find out about contract sizes and leverage. . .etc. It will take you no more than a few hours to find out all you want to learn about leverage, margin/ margin calls and arrangement sizes..Regards

  3. #3
    Go to Oanda, start a tiny live trading account with 10 dollars and play around with 10-20 units per commerce.
    You willl almost certainly lose these 10 dollars, but you won't lose a few hundred as with different brokers with bigger minimal investment and trade size.
    k

  4. #4
    It depends on your target ,proceed with oanda

  5. #5
    Quote Originally Posted by ;
    Hello, So I've been trading nothing but Binary options and today I am getting into Forex. I am currently using FXCM demo account but I have a few questions I was wondering if that community could help me reply. 1. What is margin call and how is it used? I've observed the 1:1, 25:1, 50:1 and all in between. What is the best one to use? 2. In my understanding, when you have a small account balance and your transaction goes too far in the gap, it auto sells it how does this work? 3. My end goal is to have a account balance to possess a.. .
    The question is how much have you got to lose?
    Never exchange with monies which you are not prepared to lose.

  6. #6
    Quote Originally Posted by ;
    Hello, So I've been trading nothing but Binary choices and today I am getting into Forex. I am currently utilizing FXCM demo account but I have a couple questions I was wondering if that community could help me reply. 1. Just what is margin call and how is it used? I've seen the 1:1, 25:1, 50:1 and all in between. What's the best one to use? 2. In my understanding, if you have a little account balance and your transaction moves too far in the hole, it auto sells it how exactly does this work? 3. My end goal is to have an account balance to possess a.. .
    I will get straight to the point and answer your primary question.

    What you would like to do is have a trade which may go in red 35 pips with no margin call.
    Just look in a broker that offers you say 500:1 leverage.
    If your leverage is 500:1 and you utilize your whole balance (100%) with this leverage, then your max stop loss or that which you call auto settling, or that which we call margin call would be 20 pips.
    Now employing the exact same 500:1 leverage and this time you employ (50 percent) if your equilibrium, then your max stop loss would subsequently be dropped from 20 pips to 40 pips.
    So all in all if you utilize 500:1 leverage and 10 percent of your total balance then your highest stop loss would be 200 pips.

    The thing people often discount is HIGH leverage, or any leverage which is higher then anything reduced, simply gives you the capacity to open exactly the identical position size (say 1.00 lot dimensions) but for significantly less money in comparison to reduced leverage. That of course allows you to use bigger lot dimensions, and that's where people get into problems.

  7. #7
    Quote Originally Posted by ;
    Hi, So I have been trading nothing but Binary choices and now I am getting into Forex. I am currently using FXCM demo account but I have a few questions that I was wondering if that neighborhood can help me reply. 1. Just what is margin call and how can it be used? I have observed the 1:1, 25:1, 50:1 and all in between. What's the best one to use? 2. In my understanding, when you've got a little account balance and your trade goes too far in the hole, it auto sells it, how exactly does this work? 3. My end goal is to get a account balance to have a.. .
    Margin calls are distinct on different brokers, I have 50/20% on my own HF premium it means that when demanded margin drops to 50% you get margin call and to 20 percent its automatically closed. Regarding 3 stage you Will Need to calculate required margin for your lot size using info regarding leverage, for example with 1:400 leverage and One lot position you require 250 necessary margin to support it

  8. #8
    Leverage may be a friend and enemy during times of market volatility.Many brokers leverage upto 1000. It is dependent upon how much you need to drop in the trade.You place your leverage accordingly.You can try different leverages in demo account and you will understand it in a better way.

  9. #9
    My friend said that im already can do Foreign Exchange trading without spend money, because sometime many broker that possess a no deposit advertising, im just take advantage of it to make can do Foreign Exchange trading, therefore I can learn about it while have an opportunity to generate profit with no risk.

  10. #10
    Each individual have their own announcement for profit and loss. This proves that the financial success for you personally can be nothing for another. This is only subjective and as the golden rule says never invest the cash that which you can't manage to lose holds great for all the traders irrespective of their financial status.

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