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Is $100,000 A Decent Capital In Trading?

  • #161
  • Edited 6:56pm May 20, 2019 4:45pm | Edited 6:56pm
Quoting The Fool
{quote} There is no "leverage" for those of us who are in exchange-traded products trading. But Margin is something all need to understand.... https://www.investopedia.com/terms/m...ancemargin.asp https://www.cboe.com/learncenter/pdf/margin2-00.pdf https://www.nfa.futures.org/members/...s-handbook.pdf https://www.tdameritrade.com/retail-...df/AMTD086.pdf
I have not traded exchange related products; I dont know if they offer any leverage. There is no maintenance margin concept in Forex.

All I know is about Forex and this site is named after Forex.

In Forex, Margin and Leverage are defined as such:

Margin: A good faith deposit or performance bond. In leveraged trading, the margin amount is held in deposit while the trade is open. The amount of margin required to enter a trade is determined by the rules discussed below. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the margin available in your account will limit the size of the positions you can open.

Leverage: The reciprocal of Margin. For example, 2% margin is the same as 50:1 leverage. The maximum leverage allowed is determined by the regulators in each geographic region. Clients and OANDA may choose to be conservative and limit leverage utilized to lower levels than allowed by the regulators.

Regulatory margin requirement: The minimum margin required by the regulator for the instrument. The fxTrade margin requirements page lists the Regulatory Margin Requirements for each instrument.

Margin requirement: The margin required for the instrument in your account. This is the greater of the Regulatory Margin Requirement for the instrument and the margin you selected for your account. For example, if the regulator requires 2% (50:1 leverage) on EUR/GBP, and you selected 5% margin (20:1) leverage for your account, your Margin Requirement for the instrument will be greater of the two, which is 5%.

https://oanda.secure.force.com/Answe...language=en_US

Sometimes one has to unlearn what they know to learn it correctly for a specific field.

To be sane, it is better for me to stick to the calendar and news sections of this site.
if someone does not know the relationship between the margin and the leverage, is NOT a Forex Trader at all.
People don't even know the basics, posing as big shot traders in every thread.
DONE with this.
Determination + Persistence = Success
  • #162
  • May 21, 2019 12:25am May 21, 2019 12:25am
Quoting SKLearn
{quote} I have not traded exchange related products; I dont know if they offer any leverage.
Stock brokers are not as generous as forex brokers since they only offer a leverage of 1:2.
  • #163
  • Edited 4:16am May 21, 2019 1:56am | Edited 4:16am
Quoting SKLearn
{quote} I have not traded exchange related products; I dont know if they offer any leverage. There is no maintenance margin concept in Forex. All I know is about Forex and this site is named after Forex. In Forex, Margin and Leverage are defined as such: Margin: A good faith deposit or performance bond. In leveraged trading, the margin amount is held in deposit while the trade is open. The amount of margin required to enter a trade is determined by the rules discussed below. Although there is no minimum margin deposit required to open an fxTrade...
Margin is the amount of capital required to maintain AND open a position, of course it's determined by leverage.


https://www.tradingmasters.io/cfd-co...nance-and-call
  • #164
  • May 21, 2019 2:43am May 21, 2019 2:43am
Quoting HeyYou
{quote} Margin is the amount of capital required to maintain AND open a position, of course it's determined by leverage.
and now,when we finally agreed on what is leverage,can we agreed also,that leverage is not a bad,bad,bad,but it is tool for trader.
Of course in hands of inexperienced trader might be dangerous,but like I said,guns don't kill people,people do.
Whether you think you can, or you think you can't,you're right. H.F.
  • #165
  • May 21, 2019 3:20am May 21, 2019 3:20am
Quoting Simply-Me
{quote} and now,when we finally agreed on what is leverage,can we agreed also,that leverage is not a bad,bad,bad,but it is tool for trader. Of course in hands of inexperienced trader might be dangerous,but like I said,guns don't kill people,people do.
he he he.. well, just like alcohol, if you drink beer with moderation once in a while you'll enjoy a nice high and the day after you'll not feel bad.

Personally I don't need more than 1:15 and I trade high risk.. even if I trade with "no sl" 1:30 is enough.
  • #166
  • May 21, 2019 3:21am May 21, 2019 3:21am
Quoting SKLearn
{quote} Margin is Inversely Proportional to the Leverage
well done , you have worked out the greater the leverage you have, the less margin you need - someone get that man a genius badge to slap on his forehead next to the retard tattoo.

The formula for margin

(Trade size / leverage) * exchange rate

without trade size shit head, the calculation doesn't work and the percentages you see @brokers is actually higher than the result of the formula

100:1 leverage with eurgbp @ rate of 0.8783 with a trade size of 100k = 0.87% dumbass. All this time you have just been blindly feeding off the shit fed to you by your brokers even posting this as your yoda moment. If you even bothered to check the actual data instead of regurgitating the shit you read you might get that brain cell fired up.

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By the way, have you found a trading system yet newby?
  • #167
  • May 21, 2019 3:37am May 21, 2019 3:37am
Quoting SKLearn
{quote} sorry to see your little brain can not take this.. let me explain this.... {image} the broker is saying, if you trade bigger positions, the broker will reduce the leverage thus increasing the MMR.
The article doesn't even mention leverage but please go ahead and insert leverage note in there to satisfy your stupidity and assumption. The article i posted here is showing margin bands according to trade size and it even states in there

"When trading with margin, it is important to remember that the amount of margin needed to hold a position will ultimately be determined by the trade size"

interpreted by you as

"When trading with margin, it is important to remember that the amount of margin needed to hold a position will ultimately be determined by the trade size leverage"

Assumption is the mother of all f...ups and you are sure curve fitting data placed right in front of you to fit your narrative. I am done with you chump - go back to baby pips where you are clearly spending all your time. Maybe one day you will find a magic neon green indicator that will light your way to profit.
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  • #168
  • May 21, 2019 3:52am May 21, 2019 3:52am
margin account vs cash account

https://www.firstrade.com/content/en...gin/margincash


first read:

https://www.investopedia.com/terms/m/marginaccount.asp


edit: found a better article

https://www.investopedia.com/univers...in/margin1.asp
  • #169
  • Edited 4:22am May 21, 2019 3:58am | Edited 4:22am
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.
Just so we are clear where this argument began

Margin = the amount of money required for a given trade SIZE
Without trade size - you cannot determine margin, leverage is just a denominator of the trade size

Perhaps the problem here is you can't read properly, maybe that's a sign of the lack of intelligence or maybe its reflective on your nature of assumption.

formula is

trade size / leverage * rate


without trade size, what is leverage determining? Is it unicorns?
  • #170
  • May 21, 2019 5:13am May 21, 2019 5:13am
Yes.
  • #171
  • Edited 9:06am May 21, 2019 8:52am | Edited 9:06am
Quoting EcoTrader
{quote} Just so we are clear where this argument began Margin = the amount of money required for a given trade SIZE Without trade size - you cannot determine margin, leverage is just a denominator of the trade size Perhaps the problem here is you can't read properly, maybe that's a sign of the lack of intelligence or maybe its reflective on your nature of assumption. formula is trade size / leverage * rate without trade size, what is leverage determining? Is it unicorns?
of course, margin is based on trade size also. if there is no trade size, why in the world one needs margin and leverage.
I am busy now and will come back and call out your lies...
Have you ever played ass in cards....now you carry sack full of lies....what an ass you are...

meantime, look at I quoted one of my post 10 hours back...which is 5 hours before your pathetic verbal diarrhea.

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I gave the price range I entered in the previous posts, I gave the margin I use...then I mentioned, if I give out leverage I used for this, people can figure out the lot size.
Determination + Persistence = Success
  • #172
  • May 21, 2019 10:02am May 21, 2019 10:02am
Quoting EcoTrader
{quote} Just so we are clear where this argument began Margin = the amount of money required for a given trade SIZE Without trade size - you cannot determine margin, leverage is just a denominator of the trade size Perhaps the problem here is you can't read properly, maybe that's a sign of the lack of intelligence or maybe its reflective on your nature of assumption. formula is trade size / leverage * rate without trade size, what is leverage determining? Is it unicorns?

Quote
Just so we are clear where this argument began
Wrong and it is a lie. It all started your valuable, excellent wisdom nuggets.

EcoTrader version 1.0
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.
wisdom nugget #1
Quote
Margin depends on the brokers risk assessment of you as a trader

wisdom nugget #2
Quote
has diddly squat to do with leverage.

wisdom nugget #3
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.

wisdom nugget #4
Quote
Its simple debt risk assessment, nothing to do with the leverage size itself


EcoTrader version 2.0

now accepts leverage and margin has relationship in 2.0;
but brings trade size as if we dont know lot size also plays a hand in margin calculation.

Quote
Margin = the amount of money required for a given trade SIZE

Quote
formula is trade size / leverage * rate

What an Idiot!!!
Determination + Persistence = Success
  • #173
  • May 21, 2019 10:14am May 21, 2019 10:14am
Quoting EcoTrader
{quote} well done , you have worked out the greater the leverage you have, the less margin you need - someone get that man a genius badge to slap on his forehead next to the retard tattoo. The formula for margin (Trade size / leverage) * exchange rate without trade size shit head, the calculation doesn't work and the percentages you see @brokers is actually higher than the result of the formula 100:1 leverage with eurgbp @ rate of 0.8783 with a trade size of 100k = 0.87% dumbass. All this time you have just been blindly...
This is another joke.

whether you trade 1 lot or 100 lots, the margin is always based on lot size, leverage and the current quote price.

if the leverage is higher, the margin is lower;
means, a trader with 1:50 leverage trading 1 lot locks in roughly $2500+ in margin;
whereas a trader with 1:500 leverage needs only $250 as margin for the same 1 lot.
(some fool would come and say, hey, it is not 2500, it is 2100...dude, it is just an example, varies based on quote price, suck it up)

Go moron, you need babypips more than anybody here in FF.
Determination + Persistence = Success
  • #174
  • Edited 10:49am May 21, 2019 10:38am | Edited 10:49am
Quoting SKLearn
{quote} This is another joke. whether you trade 1 lot or 100 lots, the margin is always based on lot size, leverage and the current quote price. if the leverage is higher, the margin is lower; means, a trader with 1:50 leverage trading 1 lot locks in roughly $2500+ in margin; whereas a trader with 1:500 leverage needs only $250 as margin for the same 1 lot. (some fool would come and say, hey, it is not 2500, it is 2100...dude, it is just an example, varies based on quote price, suck it up) Go moron, you need babypips more than anybody here in FF....
Oh so now it's based on lot size and leverage. Isn't it hilarious how you didn't state that in the first place and carried on like a 20 year veteran on how margin is only about leverage. Seems like you found your lost brain cell, petty you can't find a working trading system. Back to baby pips retard. Did you get that example from baby pips where you wet your little toes into trading? Next thing you going to tell me is professional traders stare at charts and indicators.
  • #175
  • May 21, 2019 10:40am May 21, 2019 10:40am
Quoting SKLearn
{quote} {quote} Wrong and it is a lie. It all started your valuable, excellent wisdom nuggets. EcoTrader version 1.0 {quote} wisdom nugget #1 {quote} wisdom nugget #2 {quote} wisdom nugget #3 {quote} wisdom nugget #4 {quote} EcoTrader version 2.0 now accepts leverage and margin has relationship in 2.0; but brings trade size as if we dont know lot size also plays a hand in margin calculation. {quote} {quote} What an Idiot!!!
Blaaa Blaaa Blaaa. More hopeless shit from the FF factory clown.
  • #176
  • May 21, 2019 10:42am May 21, 2019 10:42am
Quoting SKLearn
{quote} That is interesting to know for new trader like me. May I ask you to suggest some basic systems to explore? thanks

I need not say more. You carry a huge chip on your shoulder for a greenhorn.
  • #177
  • May 21, 2019 10:54am May 21, 2019 10:54am
Quoting SKLearn
{quote} This is another joke. whether you trade 1 lot or 100 lots, the margin is always based on lot size, leverage and the current quote price. if the leverage is higher, the margin is lower; means, a trader with 1:50 leverage trading 1 lot locks in roughly $2500+ in margin; whereas a trader with 1:500 leverage needs only $250 as margin for the same 1 lot. (some fool would come and say, hey, it is not 2500, it is 2100...dude, it is just an example, varies based on quote price, suck it up) Go moron, you need babypips more than anybody here in FF....
And for the record dipshit, margin requirements differ from pair to pair. Your flawed rookie example doesn't include the pair and rate so Turkish lira for example, would be way more. But whatever floats your little greenhorn boat. Don't worry it's a common mistake only you seem to feel you know more yet you can't even provide a clear example only 50:1 requires <N> margin. You are as stupid as your ego is big.
  • #178
  • May 21, 2019 11:42am May 21, 2019 11:42am
Quoting SKLearn
{quote} of course, margin is based on trade size also.
you must specify that the position has a size. you know...
  • #179
  • May 21, 2019 12:03pm May 21, 2019 12:03pm
Quoting HeyYou
{quote} you must specify that the position has a size. you know...
You think you're funny.
  • #180
  • May 21, 2019 12:18pm May 21, 2019 12:18pm
not as much as you

"margin has diddly squat to do with leverage."

I made many mistakes, but this one.... is golden
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