Hello everyone. I have a lot of rookie questions and hope you all can help me out. I do have a couple advanced questions too.
I forgot a couple of the questions so I will add them when I remember them.
Thanks.
1) When I go long EUR/USD (with a USD account) im changing my USD to EURs but am I "buying" 100k units (1 lot) of EUR or "selling" 100k (1 lot) units of USD? If its "buying" EUR does that mean I have to have (for example, rate is 1.07 on the EUR/USD) 1.07 x 100k = 107k USD to convert to 100k units of EURs?
2) Im going to pick a random broker for stats for the next few questions. Activtrades: https://www.activtrades.com/index.as...=forex_margins. If margin is 0.25%, does that mean that when I open a 1 lot order I have to put 0.25% of the value of the order? So a $100k order would be $250 from me and $99,750 from the broker? At 0.5% its $500 from me and $99,500 from the broker? ect.
3) Continuing from question 2, tradeout level. It says 30%, does this mean 30% of the $100k or 30% of $250? Does this also mean that when trading 1 lot I can lose a max of 700 pipettes before I get tradedout?
4) Leverage. If I have an account with $1000 and open a 1 lot trade does that use all my money and adds $99k from the broker giving me a 100:1 leverage or is it a fixed amount all the time. Like if I ask for 200:1 I will always get 200:1 on all my trades, meaning I put $500 every trade for 1 lot?
5) When someone hedges a trade, when do they open the opposite order? Almost right after the trade goes against you? When do you get out? Should one have the TP of the hedge trade the same spot as the SL of the main trade?
I forgot a couple of the questions so I will add them when I remember them.
Thanks.
1) When I go long EUR/USD (with a USD account) im changing my USD to EURs but am I "buying" 100k units (1 lot) of EUR or "selling" 100k (1 lot) units of USD? If its "buying" EUR does that mean I have to have (for example, rate is 1.07 on the EUR/USD) 1.07 x 100k = 107k USD to convert to 100k units of EURs?
2) Im going to pick a random broker for stats for the next few questions. Activtrades: https://www.activtrades.com/index.as...=forex_margins. If margin is 0.25%, does that mean that when I open a 1 lot order I have to put 0.25% of the value of the order? So a $100k order would be $250 from me and $99,750 from the broker? At 0.5% its $500 from me and $99,500 from the broker? ect.
3) Continuing from question 2, tradeout level. It says 30%, does this mean 30% of the $100k or 30% of $250? Does this also mean that when trading 1 lot I can lose a max of 700 pipettes before I get tradedout?
4) Leverage. If I have an account with $1000 and open a 1 lot trade does that use all my money and adds $99k from the broker giving me a 100:1 leverage or is it a fixed amount all the time. Like if I ask for 200:1 I will always get 200:1 on all my trades, meaning I put $500 every trade for 1 lot?
5) When someone hedges a trade, when do they open the opposite order? Almost right after the trade goes against you? When do you get out? Should one have the TP of the hedge trade the same spot as the SL of the main trade?
