forex and commodities
Hey,
Anyone have any experience trading forex and commodoities on their own account? How much minimum account balance is generally needed?
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Hi
I've been trading successfully on my own account for 3 years now and from experience (this includes getting washed out a couple of times) I would realistically recommend no less than 100k and most importantly you need strict money management parameters, never put more than 3% at risk on any given trade.
Good Luck
www.forex.com
DO NOT USE THESE GUYS>
My story: I opened a practice account, all went well and I was acclimating myself to their trading platform. A week later, the FOREX.com salesman punk kid (Karstein was his name) calls me and tries to use this pressure sale tactic. He went after me like he was selling cologne at a department store, or a used car. "Why don't you want to play the markets"... I told this cock that I just wanted to study his trading platform, and that if I wanted to open an account I would obviously do so. Stay away.
By the way, typically you can start with $250 invested capital, and leverage it 100:1 ...
Be wary of the unexpected moves against you, definately gambling on many levels. Although, when the pound hit close to 1.99 USD about a month ago, I would have loved to have sold at that level on margin and reaped the windfall.
How do they determine how much I am buying? I created a practice account with 2.5k worth.. and i dont have any idea how big . Itsays the lot sizes are 100k, but thats impossible given that I only have 2.5k.
Can anyone clarify please?
sorry, i just reread my post and it seems really obsfucated
How do they determine the total cash amount of lot orders? Lets say i buy US/AUD at an exchange rate of .9167, and stated lot size is 100k. Does that mean that, excluding transaction costs, my total US dollar committed to this trade is 100000*.9167= 91,670 USD? More specically, what how is "one lot" defined?
with equity markets its easy.. stock price* #.. is the # here simply lots, while stock price is subistated by the exchange rate?
http://www.babypips.com/school/
go there, it'll answer all those questions, and help you get started in forex.
good luck!
thanks for the site, it makes forex sound easy
Forex works on leverage. Some brokers give you leverage of up to 500:1, which means that for every 1 dollar in your account you can trade for quantities of up to 500 times. (though not recommended cos 2.5K is your margin). 100:1 is more common though.
so in your example, having 2.5K in your account means you have 250K to paly around with based on 100:1 leverage, which is more than enough to execute orders in lots of 100K.
Hope that helps.
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