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  • #61
  • Feb 19, 2015 2:17pm Feb 19, 2015 2:17pm
Quoting shrike
BS. Interbank, as in EBS Markets or Reuters, min size is 1 million. But banks offer down to 1K for different clients. See lmax LPs for example. Also you can trade 10K on hotspot.
HotSpot? As in HotSpot fx? They got out of the retail market LONG time ago and went institutional. Their min. account size is a cool $million. They are coming back??
Make your losses in demo. Earn your profits live.
  • #62
  • Edited 2:33pm Feb 19, 2015 2:20pm | Edited 2:33pm
Quoting MaximeCau
{quote}To really trade 100k you need around 20k in your account.
That is ABSOLUTELY NOT true. You can do it with $10K or even lower than that. I used to trade with IB and at one point my account was reduced to just several K and I was still trading standard lots. And their margin is like 33:1.
Make your losses in demo. Earn your profits live.
  • #63
  • Feb 19, 2015 3:26pm Feb 19, 2015 3:26pm
Quoting Forexia
{quote} That is ABSOLUTELY NOT true. You can do it with $10K or even lower than that. I used to trade with IB and at one point my account was reduced to just several K and I was still trading standard lots. And their margin is like 33:1.
Everything depends on what leverage you use... i mysef can trade one lot with 1k account but how many time will I stay profitable ? Professionnals use 6 to 8 leverage for currencies...
  • #64
  • Edited 9:03pm Feb 19, 2015 5:28pm | Edited 9:03pm
Quoting MaximeCau
{quote} Everything depends on what leverage you use... i mysef can trade one lot with 1k account but how many time will I stay profitable ? Professionnals use 6 to 8 leverage for currencies...
Well their leverage is 33:1 or even lower I think. And I was able to trade standard lots fine. The biggest thing about leverage is the price impact of the position on capital. At 33:1 leverage, the price impact is manageable.

Quoting MaximeCau
{quote} That was a discussion I had with him a year ago. {quote} The proof a real DMA is the order size : - Currenex : $100k average per order - Interbank : 1 contract : 100k of the base currency. Lower than that it is no more DMA...
At IB, the interbank minimum trade size is $25K, anything below that is filled as odd lots with padded spread that's higher than the interbank raw spread. Anytime when the trade size is $25K, you get DMA with interbank spread. So it's not really true that you have to trade at least $100K in order to get those "liquidity providers" to fill your trades. IB is as true of DMA ECN as I have seen (literally split-second executions, very little negative slippages and majority of the time positive slippages, no widened spread even during news time) with a min. starting account size that's within retail traders' reach. BUT with their horribly slow and error-prone trading platform, no hedging policy, I was never profitable with them unfortunately.

But on the other hand, those "liquidity providers" are no angels either. They are the ULTIMATE market maker. Take a look at what they did during the SNB event:

http://forexmagnates.com/banks-bucke...nc-volatility/
Make your losses in demo. Earn your profits live.
  • #65
  • Feb 19, 2015 11:43pm Feb 19, 2015 11:43pm
Quoting MaximeCau
{quote} Everything depends on what leverage you use... i mysef can trade one lot with 1k account but how many time will I stay profitable ? Professionnals use 6 to 8 leverage for currencies...
Nah, professionals uses 2.5 for high frequency quant currency funds.

4 - 5 for Long term Macro funds.

Only if credit says yes tho
  • #66
  • Feb 20, 2015 4:49am Feb 20, 2015 4:49am
Hey guys, do you clearly understand what you're speaking about???? Can you mention pros/cons about high/low margin requirements for professional trader?
With high margin you will only freeze you monies and lost them more sooner if you have no brains, the outcome in both low/high is the same.

If we're speaking institutional, that's credit lines, no margin. It works slightly different way. You will be in play until you can cover the credit. In most cases the credit line is 80% of your collateral, then you can make calculations....

Some banks, for example CitiFX offers margin base for institutional, now crazy 4% and you can trade on Velocity 2.0 but spreads on it are not very competitive, usually 0.6-0.8 per side on 10mio EURDollar, depends on your monthly flow. If you trade 3-6 bln. volume, you can discuss lower spreads.
The main advantage is full execution of any order size. Bank gives daily liquidity 150mio standard but easily can be increased.
That is Tier 1 flow, no any aggregations. Cheers.
  • #67
  • Feb 20, 2015 11:01am Feb 20, 2015 11:01am
https://m.youtube.com/watch?v=apOUbIDOu0A

Start listening at 10'

But I agree with you it is nosense to hold large amounts of money in your brokerage account.
  • #68
  • Feb 20, 2015 11:30am Feb 20, 2015 11:30am
There're a lot of factors to understand. Everything depends on your trade skill level. High margin gives your broker more money in case of negative balance of any Black Swan. It supposed that high margin keeps you away from taking excessive risk positions and nothing more, but who cares!
  • #69
  • Feb 20, 2015 11:38am Feb 20, 2015 11:38am
Quoting M967
but who cares!
You're broker
  • #70
  • Feb 20, 2015 11:43am Feb 20, 2015 11:43am
Ha-ha, no, I just want to help to clarify how it works
  • #71
  • Feb 20, 2015 11:56am Feb 20, 2015 11:56am
It questions also on what basis we should calculate profits... On the account size or the leveraged size ?

Most of the time people calculate it on the account size. But if we follow margin strategy, we should calculate it on the leveraged amount.

It questions also why so many POP brokers require 50k or 100k deposit for opening an account.
  • #72
  • Feb 20, 2015 12:03pm Feb 20, 2015 12:03pm
About profits: banks charge PoP and other brokers, dealers $1 per Million, now $1.25 after SNB. So now you can see how much PoP gets charging you)
  • #73
  • Feb 20, 2015 9:56pm Feb 20, 2015 9:56pm
Quoting MaximeCau
https://m.youtube.com/watch?v=apOUbIDOu0A Start listening at 10' But I agree with you it is nosense to hold large amounts of money in your brokerage account.
"Professional traders leverage up to 4 to 5 times in the account for equities and 6- 8 times for currencies...?" Wussies!! LOL
Make your losses in demo. Earn your profits live.
  • #74
  • Edited 10:48pm Feb 20, 2015 10:00pm | Edited 10:48pm
Quoting MaximeCau
It questions also on what basis we should calculate profits... On the account size or the leveraged size ? Most of the time people calculate it on the account size. But if we follow margin strategy, we should calculate it on the leveraged amount. It questions also why so many POP brokers require 50k or 100k deposit for opening an account.
Profit is profit regardless whether it's on the account size or leverage size. Leverage is just a tool that allows you to make profit according to your trading style. Leverage is just there to allow you to trade the size that you want. What determines whether you make profit or not and/or how much is the quality, integrity and honesty of your broker, leverage or no leverage. Even if you have an extremely profitable strategy, if the broker wants to screw you on the price, execution, spread and even the connection of the server, you still won't make money even if you trade with 100% cash.

Because everything is traded OTC for forex and there is no organized exchanges, everything is really in the hands of the liquidity "providers" and/or the brokers.

http://forexmagnates.com/banks-bucke...nc-volatility/ They decide how much money you can make and how often and all we traders can decide is whether we want to stay or leave.
Make your losses in demo. Earn your profits live.
  • #75
  • Feb 21, 2015 2:24pm Feb 21, 2015 2:24pm
Does anyone have tried "barclays trading hub" ? They offer FX CFD.
  • #76
  • Feb 22, 2015 12:32am Feb 22, 2015 12:32am
Quoting MaximeCau
https://m.youtube.com/watch?v=apOUbIDOu0A Start listening at 10' But I agree with you it is nosense to hold large amounts of money in your brokerage account.
Don't listen to Anton....

I'm on the street and I know the real truth about this guy, just sour about the investment banking / markets side, ignore most of the stuff he says, he can't make money
  • #77
  • Feb 22, 2015 12:33am Feb 22, 2015 12:33am
Quoting MaximeCau
Does anyone have tried "barclays trading hub" ? They offer FX CFD.
Ah so this is the CFD offering of Barclays, no, only use BARX
  • #78
  • Feb 22, 2015 12:36am Feb 22, 2015 12:36am
Quoting M967
Ha-ha, no, I just want to help to clarify how it works
You can only trade on Velocity if you're using Citi Margin FX, not Citi FX, there's kind of a difference.

Margin FX is institutional only. I have dealt with them.
  • #79
  • Feb 22, 2015 12:37am Feb 22, 2015 12:37am
Quoting MaximeCau
It questions also on what basis we should calculate profits... On the account size or the leveraged size ? Most of the time people calculate it on the account size. But if we follow margin strategy, we should calculate it on the leveraged amount. It questions also why so many POP brokers require 50k or 100k deposit for opening an account.

Anyways, I plan on going with FIXI, thoughts?
  • #80
  • Feb 22, 2015 12:57am Feb 22, 2015 12:57am
Quoting MaximeCau
https://m.youtube.com/watch?v=apOUbIDOu0A Start listening at 10' But I agree with you it is nosense to hold large amounts of money in your brokerage account.
Whatever this guy is saying is absolutely bollocks, he really has NO idea about the industry and the reality of retail trading, hence this is why I doubt if he actually investments his own money.

Making $100,000 doesn't give one any choices, anyone who doesn't have professional trading or PM experience is just applying the very superficial layer of the markets to their own investments, eg. charts. Ok fair enough if Anton thinks they can interview the bank / hedge fund when they have made some money trading the superficial layer of the markets. I'm sure they'll get slaughtered when questioned about 30 year swaps and digital puts as well as complex Macro indicators e.g. the correlation between margin debt, M3 and the currency.

Anyone who listens to Anton is completely despised at in the professional world, this guy was fired by JPM ages ago for losing too much money. Lex Van Dam found him to do the documentary because he was the only available one.

No one seems to realise that he then tells people to open an acc at Saxo so that he becomes and introducing broker.

He's just the same lol.
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