Can someone here answer me a question about buying on margin. Need Help!

gnr2206

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Ive got 100 euro and i want to do some really small trading (i.e making about 1 to 3 dollars a trade, not much but its satisfactory at the start)

I just want to know how can i buy currency worth about 20 or 30 or 50 dollars worth of stock on margin (not too much risk is what i want) so i dont end up losing my inital deposit.

also, can i buy forex without margin??



To summarise, i want to say; can i buy a low volume of currency without lossing alot (i.e buying 20 euros worth of pound of stock and loosing 300 euro on one trade. Please answer if you know th answer please!
 
I'm struggling a to understand whether you're talking about forex trading, stock trading, or some combination of the two. Your use of the term "stock" is problematic here. It isn't used in forex trading, if that's what you're trying to ask about.

If you just want to know whether you can trade something like 20 EUR/GBP on an account of 100 EUR then the answer is yes.
 
Ive got 100 euro and i want to do some really small trading (i.e making about 1 to 3 dollars a trade, not much but its satisfactory at the start)

I just want to know how can i buy currency worth about 20 or 30 or 50 dollars worth of stock on margin (not too much risk is what i want) so i dont end up losing my inital deposit.

also, can i buy forex without margin??



To summarise, i want to say; can i buy a low volume of currency without lossing alot (i.e buying 20 euros worth of pound of stock and loosing 300 euro on one trade. Please answer if you know th answer please!

You should open a spread betting account..make sure you use guaranteed stop losses. You are going to lose your money very quickly but at least your loss will be limited to the deposit (margin) you put down... try shortsandlongs.. I dont mean any offence in telling you that you will lose money quickly everyone does at the begining and most continue to lose... consider it tuition!
 
I'm struggling a to understand whether you're talking about forex trading, stock trading, or some combination of the two. Your use of the term "stock" is problematic here. It isn't used in forex trading, if that's what you're trying to ask about.

If you just want to know whether you can trade something like 20 EUR/GBP on an account of 100 EUR then the answer is yes.

my apologies, ill clear it up. im talking about forex trading not stock,soory for not clearing it up.

what i want to know in essense is: can i buy forex without margin? If not, can i buy forex without a high level of margin? Say... 10 euros worth of stock with margin bringin it to 20 but not lossing a high amount like 200 in one trade. I dont mind losing money just not alot as im quite young and am only quite new to this. Im new to this but im i have a short term dream of making 10 euro a day ha.

I suppose the reason im confused is because with stock you can buy it without margin but im unsure with forex.



You should open a spread betting account..make sure you use guaranteed stop losses. You are going to lose your money very quickly but at least your loss will be limited to the deposit (margin) you put down... try shortsandlongs.. I dont mean any offence in telling you that you will lose money quickly everyone does at the begining and most continue to lose... consider it tuition!



i have a FXCM account (demo) at the moment
 
Ive got 100 euro and i want to...


Stop. Take a deep breadth. Go get some education first, on what the currency markets are all about. Get up to speed on what you need to know about this business, first. Find out what makes currency prices move. Find out who the players are and where they live/do business. Learn the stratification of the business retail, wholesale, and interbank. Find out where you fit in this business and then find yourself a good Intermediary.

You could be someone with a hundred million dollars sitting on the side, so the 100 Euros comment does not mean much. You might be just interested in learning the business. One of the beautiful things about Retail currency, is that you don't even have to risk your 100 Euros, to learn whether or not this particular market is right for you. Currency trading is not for everyone. You are enticed with massive leverage, that for many Traders is beyond what they've experienced before. However, the massive leverage available in the Retail currency market can be met with the often times, hypersonic speed of the currency market and if you are caught in the wrong direction with the wrong leverage and the wrong cost basis, you could lose a relative ton.

Gearing down leverage is one thing, but if you don't yet understand what moves this market, then the leverage you use is moot anyway. You will first need to figure out how to get into the right position at the right time and for the right reasons, with the right money management strategy in place to help off-set some risk.

The first and most important thing anyone needs to know about any trading endeavor, is how to Mitigate Risk as much as possible, before entering any position for any reason. Concern yourself with Risk Mitigation Principles first - and the rest will fall into place by definition. Learn to deal with Risk upfront, so you don't get crushed by it down the road. Profit will take care of itself, later - if and only if you have properly dealt with risk.

I (personally) would not waste a single additional moment addressing the question of how you trade 100 Euros, 1 Euro at a time. Based (solely) upon your initial question, the correct path is make your Education about this business a priority and to put Skills & Tools Development first.

If you strike out in this business without the proper Education, Skills and Tools, then you are doing yourself a huge disservice. Ask any builder or architect of any structure, what's the most important first step in construction and if they are worth their weight in salt, they will tell you laying the proper foundation is the most vital first step of all.

And, please, stay away from Bucket Shop, PayPal, Basket Weaving Houses of inbred trade manipulation. The Broker/Intermediary that you finally select, is just as important as anything else in this business - maybe even more important these days.

Stay safe, by getting Educated!
 
i have a FXCM account (demo) at the moment


Error Number 1.

As long as it remains just a demo account, then you are safe in my opinion. My opinion, is that there are superior alternatives available. Do your own homework and your own research in this regard, please.
 
Error Number 1.

As long as it remains just a demo account, then you are safe in my opinion. My opinion, is that there are superior alternatives available. Do your own homework and your own research in this regard, please.


I have a demo account with them, not a live one. Could you suggest any good brokers?

Also, is there any PDF's, book or magazines that will help me to develop my trading strategy so that i really REALLY know what im at. I want to trade GBP/EUR and EUR/GBP as i think i know this currency the best of them all and information is easier to get on them (im from ireland)
 
what i want to know in essense is: can i buy forex without margin? If not, can i buy forex without a high level of margin? Say... 10 euros worth of stock with margin bringin it to 20 but not lossing a high amount like 200 in one trade. I dont mind losing money just not alot as im quite young and am only quite new to this. Im new to this but im i have a short term dream of making 10 euro a day ha.

I suppose the reason im confused is because with stock you can buy it without margin but im unsure with forex.

You cannot trade forex without margin for one very simple reason: The brokers have a permissible leverage ratio (like 100:1) set on your account. Margin is calculated using that permissible leverage ratio based on the size of the position you take. So, even if you only trade a $10 position on a $100 account you will still be required to post margin ($0.10 if your permissible leverage is 100:1). It is done automatically.

Having said that, what you're really talking about is trading without leverage, which you can definitely do. If you trade a $10 position on a $100 account you are trading without leverage.

Also note that margin is there to protect you against losing your whole account - at least in one trade. Your broker will automatically close you out when your account balance falls below your margin requirement.
 
my apologies, ill clear it up. im talking about forex trading not stock,soory for not clearing it up.

what i want to know in essense is: can i buy forex without margin? If not, can i buy forex without a high level of margin? Say... 10 euros worth of stock with margin bringin it to 20 but not lossing a high amount like 200 in one trade. I dont mind losing money just not alot as im quite young and am only quite new to this. Im new to this but im i have a short term dream of making 10 euro a day ha.

I suppose the reason im confused is because with stock you can buy it without margin but im unsure with forex.
i have a FXCM account (demo) at the moment

You might have enough money to trade cable for 1 pound per point but it is close. Better to go for 50p. You must realise that forex can make some terrific rises and falls when you are dealing on the 4th decimal point .ie if the exchange is 1.4415, you are trading on the "5". You might get a margin call within seconds if you have the direction wrong. Euro/pound needs smaller margin.

I'm afraid that you are a little close to the mark for forex. Dax and Ftse give more leeway.
 
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