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- Joined May 2005 | Status: Member | 1,494 Posts
In trading, there is no bullshit. You either make money or you don't.
A Tool that can graphically display data stored in MT4 File 10 replies
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DislikedNot sure if this is what most people do. If my trading account is $100,000 , then I keep $85,000 at my local bank account, which is relatively safe. Put the remaining $15,000 with the broker.
High leveraged broker helps as it means you have to deposit less with them. If the account grows then take proportional money back into your home bank account. If you lose money trading then top it up with the money from your home bank account. Safer than leaving the entire $100,000 with the broker.
This is of course assuming low risk per trade, less than...Ignored
DislikedSo for a 100 pip stop loss, my position size is 5 lots. So from a 100:1 broker I need a $5000 margin.Ignored
In regards to your larger question, the only other thing I would add to the equation is how long it takes to deposit funds. If I need to deposit funds I would like to have a couple of days worth of "Buffer" with my broker since sometimes it takes up to 2 days for my deposit to show up. I wouldn't want to be held up from being able to follow my money management strategy just because I was waiting for a deposit.
Outside of that I see NO reason to leave additional funds with any broker. Put it in a savings account!