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Difference between a small and a big account

  • #1
  • First Post: Feb 27, 2012 12:39pm Feb 27, 2012 12:39pm
There is always a discussion that it is way harder to increase the size of a big account than it is on a smaller one.

What is the problem:
- not getting filled? (Forex is the most liquid market so is there really a problem getting filled? If you trade ECN what slippage can you expect?).

At what size do you really start to notice differences?
  • #2
  • Feb 27, 2012 4:54pm Feb 27, 2012 4:54pm
Quoting Kilian19
There is always a discussion that it is way harder to increase the size of a big account than it is on a smaller one.

What is the problem:
- not getting filled? (Forex is the most liquid market so is there really a problem getting filled? If you trade ECN what slippage can you expect?).

At what size do you really start to notice differences?
Oanda Say they can fill $10M at given prices and spread, so if you want you can open 2 or 3 of these depending on account size.

The main problem of increasing a larger account (greater than 1mil) than a micro is the pyschological effect. losing 1% of 1,000 isn't really difficult to take. I mean what is $10 to anyone. But 1% of $1mil is $10k which is more of problem if you have 5 days in a row of losses.

Other than that there is no real difference, execution speeds are the same in essence. Largest single trade I've ever done is 1.9mil so I am no expert on the real big sums but I can't imagine its that bad.

Jeremy
  • #3
  • Feb 27, 2012 6:30pm Feb 27, 2012 6:30pm
okay thanks for your reply.

I know we shall not compare retail traders and hedge funds but why do they have to trade different strategies than normal people can? Dividing their capital in 8 Million Dollar chunks shouldn't be that much of a problem.
  • #4
  • Last Post: Feb 28, 2012 1:47am Feb 28, 2012 1:47am
Quoting JeremyWS
Oanda Say they can fill $10M at given prices and spread, so if you want you can open 2 or 3 of these depending on account size.

The main problem of increasing a larger account (greater than 1mil) than a micro is the pyschological effect. losing 1% of 1,000 isn't really difficult to take. I mean what is $10 to anyone. But 1% of $1mil is $10k which is more of problem if you have 5 days in a row of losses.

Other than that there is no real difference, execution speeds are the same in essence. Largest single trade I've ever done is 1.9mil so I...
Thanks for your detailed reply. It is also helpful for me to understand the difference between a small and a big account as well as problem associated with it.
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