Disliked{quote} Could you explain this, haniam? I get that it gets harder to scalp agressively with larger lotsizes because you start influencing the price and you literally 'pay the price' ie worse entries and exits, but is the effect so big that making 7.000% on small lotsizes is easier than making 'just' 100% on these larger ones!? Please elaborate!Ignored
For number reference
- With 1000 units you are nothing for a broker
- With 10000 you are an average user. This is the smallest size for bigger brokers.
- With 100000 broker starts to be interested by you.
- With 1000000 you start to count as a big user.
- With 10000000 you are institutional. Many average brokers can not execute your orders anymore.
This will affect:
1- Account Balance
2- Leverage
3- The order size
4- Execution
5- Multitude of other risks to your account (counter party risk, technical failure risk...)
6- ...
So this is how turning 200 to 14k (considered as 7.000%) is technically feasible (you do not even need to scalp aggressively) as you are still considered as a retail user while turning 14k to 28k (100%) becomes much harder, and even harder as your balance and lot size grows. You can quickly go to 1:10 leverage then 1:5, 1:2...