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Is $100,000 A Decent Capital In Trading?

  • #121
  • May 19, 2019 7:41am May 19, 2019 7:41am
I don't get the hype over leverage. I can happily extract good profit each month on 30:1
  • #122
  • May 19, 2019 9:13am May 19, 2019 9:13am
Quoting EcoTrader
I don't get the hype over leverage. I can happily extract good profit each month on 30:1
I believe you, but with 1:200 or even 1: 400 you would't have to keep all your trading capital with broker, only necessary portion with some money management that you using know and rest of your trading capital would be sitting on your bank account and waiting for chance to work.
And if something would happen with your broker, not all your money will be on risk.
Whether you think you can, or you think you can't,you're right. H.F.
  • #123
  • May 19, 2019 9:45am May 19, 2019 9:45am
Quoting Simply-Me
{quote} I believe you, but with 1:200 or even 1: 400 you would't have to keep all your trading capital with broker, only necessary portion with some money management that you using know and rest of your trading capital would be sitting on your bank account and waiting for chance to work. And if something would happen with your broker, not all your money will be on risk.
Leverage = debt, and more of it you have the greater exposure you have to risk. When markets get very volatile, leverage is the bit that kills trading accounts. So you might think its better having capital free to do other things, when the shit hits the fan you will have to either accept account blowout or have to shift money out of other areas you seem to be useful to save your account.
  • #124
  • May 19, 2019 11:26am May 19, 2019 11:26am
Quoting EcoTrader
{quote} Leverage = debt, and more of it you have the greater exposure you have to risk. When markets get very volatile, leverage is the bit that kills trading accounts. So you might think its better having capital free to do other things, when the shit hits the fan you will have to either accept account blowout or have to shift money out of other areas you seem to be useful to save your account.
1.Leverage = tool
2.exposure to market is still same,on 1:30 and 1:200 account I have, max 3% of capital per trade
3.when markets gets volatile,exposure is still same 3%,leverage has nothing to do with it
4.when shit hits the fan,#3 apply
Whether you think you can, or you think you can't,you're right. H.F.
  • #125
  • May 19, 2019 12:52pm May 19, 2019 12:52pm
Quoting Simply-Me
{quote} 1.Leverage = tool 2.exposure to market is still same,on 1:30 and 1:200 account I have, max 3% of capital per trade 3.when markets gets volatile,exposure is still same 3%,leverage has nothing to do with it 4.when shit hits the fan,#3 apply
Leverage allows a small account to trade the same size as a large account. To state that it is no different can only mean one thing, you are trading small with high leverage. This is the only scenario it is no different. When markets are normal a pair could have a 60 pip avarage daily range. When markets are volatile, that could be 150 to several hundred. To assume that 3% risk in this environment is no different is naive.
  • #126
  • May 19, 2019 1:40pm May 19, 2019 1:40pm
Quoting EcoTrader
{quote} Leverage allows a small account to trade the same size as a large account. To state that it is no different can only mean one thing, you are trading small with high leverage. This is the only scenario it is no different. When markets are normal a pair could have a 60 pip avarage daily range. When markets are volatile, that could be 150 to several hundred. To assume that 3% risk in this environment is no different is naive.

Eco,again,leverage is only amount of money,your broker will blocked from your account to open position.
Rest is money management,trading skills etc,etc.
Whether you think you can, or you think you can't,you're right. H.F.
  • #127
  • May 19, 2019 1:51pm May 19, 2019 1:51pm
Quoting Simply-Me
{quote} Eco,again,leverage is only amount of money,your broker will blocked from your account to open position. Rest is money management,trading skills etc,etc.

You are referring to margin not leverage. You have a lot to learn
  • #128
  • May 19, 2019 1:58pm May 19, 2019 1:58pm
Quoting EcoTrader
{quote} You are referring to margin not leverage. You have a lot to learn
The money blocked for margin depends on the leverage used. That is Key difference in Trading.

Margin is determined by the leverage. In few selected vulnerable events, brokers reduce the lev; thus demanding more margin.

While a 50 lev blocks $2500 for 1lot, one can use the same amount as capital to trade the 1 lot with $250 as margin if lev is 500.
Determination + Persistence = Success
  • #129
  • May 19, 2019 2:11pm May 19, 2019 2:11pm
Quoting EcoTrader
{quote} You are referring to margin not leverage. You have a lot to learn

ohoh believe me,at my age I understand pretty good,how much I have to learn.
Sorry I didn't express my thoughts precisely,but atleast SKLearn understood what I meant.
Whether you think you can, or you think you can't,you're right. H.F.
  • #130
  • May 19, 2019 2:24pm May 19, 2019 2:24pm
This whole discussion on leverage is way over hyped, and people are bringing a lot of emotion into something that is actually very simple.

There are three situations I can think of where leverage comes into play:

- You want to mitigate your risk at a certain broker, so you split your funds between two. You only actively trade on one, or manage your trades as such that you never exceed your total exposure (2% or less ideally)

- Your system has rather low drawdown, and so you are better of parking say half your funds in a high interest or other very liquid investment that you can withdraw to fund an account after a drawdown, and then using the other half to trade with the broker. You trade based on the total amount you have available, instead of what you have at the broker.

- You are underfunded, you have all your exposure in your broker account. You are using leverage to trade at risk that is not advisable. You may get super lucky and actually get on a good streak, but ultimately you are just gambling. If you are treating your trading as a business, this would be a Poor Business Decision (TM)
To be one with the market, you must first be one with yourself.
  • #131
  • May 19, 2019 2:57pm May 19, 2019 2:57pm
parking half the money in a bank account, and the other half at the broker, really means you are using extremely high leverage.

ecotrader is correct, if the market moved against you by a slightly big move, you are taken to the cleaners; just like the gofundme boy from Jan 3rd this year.

if you think your stop loss is going to save you, think again. obviously you have no clue that stop losses in those occasions, will slip big time. think the CHF depegging incident.

oh yeah, you got a lot to learn boy

you think the broker loves you when they give you 500x leverage!
  • #132
  • May 19, 2019 3:10pm May 19, 2019 3:10pm
Quoting alphadude
parking half the money in a bank account, and the other half at the broker, really means you are using extremely high leverage. ecotrader is correct, if the market moved against you by a slightly big move, you are taken to the cleaners; just like the gofundme boy from Jan 3rd this year. if you think your stop loss is going to save you, think again. obviously you have no clue that stop losses in those occasions, will slip big time. think the CHF depegging incident. oh yeah, you got a lot to learn boy you think the broker loves you when they give...
dude,you again playing with the words.
what is it exactly mean :extremely high leverage, slightly big move ????
how many times move like CHF incident happen in let say last 10 years?.btw on the record I don't trade CHF pairs
I told you already,talk in numbers,I do not trade in words,I trade in numbers,
Whether you think you can, or you think you can't,you're right. H.F.
  • #133
  • May 19, 2019 3:35pm May 19, 2019 3:35pm
Quoting SKLearn
{quote} The money blocked for margin depends on the leverage used. That is Key difference in Trading. Margin is determined by the leverage. In few selected vulnerable events, brokers reduce the lev; thus demanding more margin. While a 50 lev blocks $2500 for 1lot, one can use the same amount as capital to trade the 1 lot with $250 as margin if lev is 500.
Margin depends on the brokers risk assessment of you as a trader and has diddly squat to do with leverage. Like banks offer debt at different rates, so do brokers. One broker might require 50 bucks margin for the same trade as another broker requiring 200. If a broker determines you are riskier than a professional trader, then the professional will require less margin to open the same size trade as you.

Its simple debt risk assessment, nothing to do with the leverage size itself.
  • #134
  • May 19, 2019 3:40pm May 19, 2019 3:40pm
Quoting Simply-Me
{quote} ohoh believe me,at my age I understand pretty good,how much I have to learn. Sorry I didn't express my thoughts precisely,but atleast SKLearn understood what I meant.
SKLearn seems as lost as you on the topic, like 2 peas in a pod.
  • #135
  • May 19, 2019 3:56pm May 19, 2019 3:56pm
Quoting EcoTrader
{quote} Margin depends on the brokers risk assessment of you as a trader and has diddly squat to do with leverage. Like banks offer debt at different rates, so do brokers. One broker might require 50 bucks margin for the same trade as another broker requiring 200. If a broker determines you are riskier than a professional trader, then the professional will require less margin to open the same size trade as you. Its simple debt risk assessment, nothing to do with the leverage size itself.
eco and what is the leverage?
Whether you think you can, or you think you can't,you're right. H.F.
  • #136
  • Edited 4:31pm May 19, 2019 4:11pm | Edited 4:31pm
Quoting EcoTrader
{quote} Margin depends on the brokers risk assessment of you as a trader and has diddly squat to do with leverage. Like banks offer debt at different rates, so do brokers. One broker might require 50 bucks margin for the same trade as another broker requiring 200. If a broker determines you are riskier than a professional trader, then the professional will require less margin to open the same size trade as you. Its simple debt risk assessment, nothing to do with the leverage size itself.
Quote
Margin depends on the brokers risk assessment of you as a trader and has diddly squat to do with leverage.
Quote
yeah, right...that explains what you know about LEVERAGE, MMR and the relationship between them.

Nothing wrong in that...everybody has something to learn and somewhere to start...now it is your turn to learn...
babypips should be great help to you.

https://www.babypips.com/learn/forex/margin-vs-leverage
https://www.babypips.com/learn/forex/leverage-defined

If your broker requires 2% margin, you have a leverage of 50:1.
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good luck in figuring that out.

PS:
Quote
If a broker determines you are riskier than a professional trader, then the professional will require less margin to open the same size trade as you
btw, this was the funniest statement made by a trader in FF, I suppose.

NAH. Broker offers same Leverage to all;
it is pro trader who chooses to trade with low leverage; beginners tend to use max leverage.
Educated Retail Traders trade with optimum leverage based on market conditions.
Determination + Persistence = Success
  • #137
  • May 19, 2019 4:38pm May 19, 2019 4:38pm
Quoting SKLearn
{quote} {quote}{quote} yeah, right...that explains what you know about LEVERAGE, MMR and the relationship between them. Nothing wrong in that...everybody has something to learn and somewhere to start...now it is your turn to learn... babypips should be great help to you. https://www.babypips.com/learn/forex/margin-vs-leverage https://www.babypips.com/learn/forex/leverage-defined If your broker requires 2% margin, you have a leverage of 50:1. {image} good luck in figuring that out. PS: {quote} NAH. Broker offers same Leverage...

Explain this dumbass (simple collateral tiers, just like any financial organisation that deals with credit). What you are showing us is the spread seen by bucket shops and most retail traders who end up losing. Are you telling us that you could open up a 100 million pound account and open 200 lots and only have to put up 0.5% margin? You really don't understand finance do you?
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  • #138
  • May 19, 2019 4:42pm May 19, 2019 4:42pm
Quoting EcoTrader
{quote} Explain this dumbass {image}
Here you go DUMBESTASS.

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Oanda says, the company is not willing to assume any risk on the instruments and puts default leverage(2%MMR to 12%MMR) on each instrument assuming all dumberass would use max leverage. If you want to trade big, bring more money to table, that is what OANDA says, DUMBESTASS.

if you cross reference the MMR set by Oanda with the Table posted in my previous post, you will know what leverage is assigned for that instrument, and that leverage is same for all the traders using that broker, in this case OANDA.


I am not getting paid to teach...you better go and learn from babypips before show you know nothing about Forex by keep talking $#!@ like this.
Determination + Persistence = Success
  • #139
  • May 19, 2019 4:47pm May 19, 2019 4:47pm
Quoting SKLearn
{quote} Here you go DUMBERASS. {image} Oanda says, the company is not willing to assume any risk on the instruments and puts default leverage(2%MMR to 12%MMR) on each instrument assuming all dumberass would use max leverage. If you want to trade big, bring more money to table, that is what OANDA says, DUMBERASS. I am not getting paid to teach...you better go and learn from babypips before show you know nothing about Forex by keep talking $#!@ like this.
A another idiot showcasing a bucket shop as his evidence of a hard tied relationship with leverage to margin requirements. Try ask them for a 4% margin on a 500 lot position on eurjpy and they will tell you where to go stick it. Showing bucket shops that have categorised loser retail traders into hard defined ratios is NOT representative of margin requirements relative to leverage. Why do you think there is a position size limit to your broker? Do you think its a number they just picked out of thin air or actually has something to do with risk profile and tiered rates
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  • #140
  • May 19, 2019 4:50pm May 19, 2019 4:50pm
Quoting EcoTrader
{quote} A another idiot showcasing a bucket shop as his evidence of a hard tied relationship with leverage to margin requirements. Try ask them for a 4% margin on a 500 lot position on eurjpy and they will tell you where to go stick it. Showing bucket shops that have categorised loser retail traders into hard defined ratios is NOT representative of margin requirements relative to leverage.
Dude, you are an idiot; and arguing with idiot makes me an idiot.

Sorry for that.

Here is my last statement and over&out.

understanding MMR, LEVERAGE has NOTHING to do with BUCKET SHOP; but it has everything to do with YOUR little BRAIN.
Determination + Persistence = Success
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