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Comments (9)

Feb 28, 2007 - 2:46am


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

Feb 28, 2007 - 7:40am


My story: I opened a practice account, all went well and I was acclimating myself to their trading platform. A week later, the 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.

Feb 28, 2007 - 7:42am

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.

Mar 2, 2007 - 3:55am

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?

Mar 2, 2007 - 4:08am

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?

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Jun 1, 2007 - 5:30am

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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