Could you introduce any broker base on ECN+MT4+4 decimal?? | Forex Factory

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Could you introduce any broker base on ECN+MT4+4 decimal??

  • #1
  • First Post: Jun 24, 2009 11:04am Jun 24, 2009 11:04am
Hello, Do you know any brokers who are ECN + MT4 + 4 decimal? I am using ibfx, but I really hate and worry about the quote price in 5 decimal. It will make any obsession to me. I want to move out my account from them. Please kindly advise.
  • #2
  • Jun 24, 2009 11:22am Jun 24, 2009 11:22am
Quoting tusa
Hello, Do you know any brokers who are ECN + MT4 + 4 decimal? I am using ibfx, but I really hate and worry about the quote price in 5 decimal. It will make any obsession to me. I want to move out my account from them. Please kindly advise.
PFGBest..
  • #3
  • Jun 24, 2009 11:32am Jun 24, 2009 11:32am
Quoting BostonForex
PFGBest..
http://www.pfgbestdirect.net/ecn_mt4.html
  • #4
  • Edited 4:27am Jun 26, 2009 4:23am | Edited 4:27am
Quoting BostonForex
PFGBest..
Are there only one broker is ecn + mt4 + 4 decimal? I am testing the demo for PFGBest. But pfg is only 1:100 for margin...and they have not live chat. Any ecn + mt4 + 4 decimal with 1:200 margin?
  • #5
  • Aug 17, 2009 10:33pm Aug 17, 2009 10:33pm
Quoting tusa
Are there only one broker is ecn + mt4 + 4 decimal? I am testing the demo for PFGBest. But pfg is only 1:100 for margin...and they have not live chat. Any ecn + mt4 + 4 decimal with 1:200 margin?
What are you going to do with 1:200 margin? Put a 3 pip stop loss for every trade? Otherwise you are risking more than 5% of your account / trade.

Are you sure you want to do this?
  • #6
  • Aug 17, 2009 10:49pm Aug 17, 2009 10:49pm
Quoting Pip Ventures
What are you going to do with 1:200 margin? Put a 3 pip stop loss for every trade? Otherwise you are risking more than 5% of your account / trade.

Are you sure you want to do this?
So you are saying that if I buy 1 lot at 1:100 leverage and close it out with a 30 pip loss that I will lose less than if I buy 1 lot at 1:200 leverage and close it out with a 30 pip loss????

Leverage only becomes risky when multiplied by greed.
  • #7
  • Aug 18, 2009 10:02am Aug 18, 2009 10:02am
Quoting magnumfreak
So you are saying that if I buy 1 lot at 1:100 leverage and close it out with a 30 pip loss that I will lose less than if I buy 1 lot at 1:200 leverage and close it out with a 30 pip loss????

Leverage only becomes risky when multiplied by greed.
Take UJ for example.

You use 100:1 leverage on a 1k account.

Thats aproximately 1 lot.

1 lot equals $10/pip

30 pips is equal to $300 which is 30% of your account. Do you really want to risk 30% of your account on one trade?

This is just 100:1

Now use 200:1 on your 1k account and buy 2 lots. Now your at $60/pip and with a 30 pip stop loss you will loose 60% of your capital on one trade.

PURE GAMBLING!

Only scalpers need leverage but even they only need 100:1

use same example:

with 100:1 they purchase 1 lot with the lk account

Thats $10/pip they have an average of 5 pip loss which is $50 or

5% risk

If they increased their leverage to 200:1 with the same stop loss then they would increase their risk to 10% / trade.

Risking 10% per trade is not good MM.
  • #8
  • Aug 18, 2009 11:51am Aug 18, 2009 11:51am
You have a common misconception about leverage and risk management.

First off you should never buy 1 standard lot with a 1k account. You would very quickly move into a margin call when price moved against you even a few pips as your available margin would fall below the requirements.


So assuming the same 1k account size and a modest 2% risk we have $20 to risk per trade. Our stop is 20 pips so we have $1 per pip to risk. That means we can buy 1 mini. That value does not change because the available leverage is higher. Don't look at how much you can buy, look at how much you should buy.

Why bother with higher leverage then? Let's approach leverage from a different point of view. You open your USDJPY trade with proper 2% risk. 30 min later you move your stop to break even. How much of your account is at risk? Zero. Now EURJPY lines up and you open a trade with it, same risk. Eventually that stop gets moved to break even. etc.etc.etc. What higher leverage allows me to do is repeat that cycle more often than I could have with lower leverage.

Sorry for the thread hijack.
  • #9
  • Aug 18, 2009 12:17pm Aug 18, 2009 12:17pm
Quoting magnumfreak
You have a common misconception about leverage and risk management.

First off you should never buy 1 standard lot with a 1k account. You would very quickly move into a margin call when price moved against you even a few pips as your available margin would fall below the requirements.


So assuming the same 1k account size and a modest 2% risk we have $20 to risk per trade. Our stop is 20 pips so we have $1 per pip to risk. That means we can buy 1 mini. That value does not change because the available leverage is higher. Don't look at how much...
Ok, simply put is this:

With higher leverage you can put on more trades at once.

You can have an ej uj au eu and gj open with 2% risk each.

Ill give you that. Some would say that you should never have more than 5% on the table period at one time. But I disagree. I think you should never have more than 5% on one thing at a time.

So if you want to be trading multiple instruments then I suppose more leverage could be used.

So you take 200:1 and ave 6 trades of 33:1 leverage.

But whatever you do, dont use 200:1 leverage on 1 trade. lol
  • #10
  • Aug 18, 2009 12:21pm Aug 18, 2009 12:21pm
Quoting Pip Ventures

But whatever you do, dont use 200:1 leverage on 1 trade. lol
Agreed. LOL!
  • #11
  • Oct 21, 2009 11:03am Oct 21, 2009 11:03am
You have a common misconception about leverage and risk management.

First off you should never buy 1 standard lot with a 1k account. You would very quickly move into a margin call when price moved against you even a few pips as your available margin would fall below the requirements.


So assuming the same 1k account size and a modest 2% risk we have $20 to risk per trade. Our stop is 20 pips so we have $1 per pip to risk. That means we can buy 1 mini. That value does not change because the available leverage is higher. Don't look at how much you can buy, look at how much you should buy.

Why bother with higher leverage then? Let's approach leverage from a different point of view. You open your USDJPY trade with proper 2% risk. 30 min later you move your stop to break even. How much of your account is at risk? Zero. Now EURJPY lines up and you open a trade with it, same risk. Eventually that stop gets moved to break even. etc.etc.etc. What higher leverage allows me to do is repeat that cycle more often than I could have with lower leverage.

________________________________________

anyone who does not understand the above, reread and do not take another trade until you do understand. above is all you need to know about money management - and without it you are automatically one of the 95%.

size your trade according to the logical stop-loss level so you can only lose 2% of your account (not the 3% everyone says), and move your stop to get a free trade when it is smart to do so.

note that you would not open a E/J trade after a U/J trade until the U/J was a free trade because the "J" makes them correlated and you would be doubling your risk.
realize the universe is one thing, and attach it to your body
  • #12
  • Last Post: Oct 26, 2009 12:35pm Oct 26, 2009 12:35pm
Quoting buddhi

size your trade according to the logical stop-loss level so you can only lose 2% of your account (not the 3% everyone says)
Super duper thread hijack, but I'll just leave this here...

http://en.wikipedia.org/wiki/Kelly_criterion
Hindsight is 20/20
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