Confusion about leverage

DaveJB said:
...and I can't help wondering why you want to know who holds (or owns) the thing being traded? It' doesn't matter a jot - some people figure something will go up in price, others figure the price will drop, they trade their opinions without either side necessarily holding the thing they are supposedly trading. All that matters is that at any moment a price for the object can be agreed, so that traders can agree who owes what to whom. Very few people have a genuine need or garage space for tons of grains, lean hogs, or Brent crude but they trade them all the same.
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I started to trade when I was 19 and this is my 3rd year trading in forex and now starting to trade gold and silver. Somehow I'm curious how actually I earn and lose my money. Who knows in the next 20 years there might be someone would ask the same question? At least I can answer (or others who read this thread). Knowledge is more precious than money. Knowledge can give you more money. Even to rob a bank need knowledge if you don't want to get caught. Some people might be rich and trade without knowing how actually he got the money. But for me, it's always better to be rich and knowledgeable.

Rhody Trader said:
Believe it or not, I once got into an exchange with someone on another forum who thought I was revelling in the prospect of traders losing money. I think I had made some comment about how interesting it was going to be in the market (forex) when the volatility picked up and how it was likely to shake out a lot of the new traders that had been drawn into the market during what was a period of very low volatility. The other poster said something about how a good Christian wouldn't enjoy the fact that others were losing money. Of course I immediately informed him that if he was trading retail forex then by definition there was someone on the other side of the trade losing money. I don't think I ever saw him on the forum again.
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What is forex? And is there any non-retail forex (or what ever you might say)?
 
flizzoe said:
I started to trade when I was 19 and this is my 3rd year trading in forex and now starting to trade gold and silver.

What is forex?

And is there any non-retail forex (or what ever you might say)?
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You've been trading? FX for 2 years & you don't know what it is??

You're not Hank Paulson in disguise are you?
 
ampro said:
You've been trading? FX for 2 years & you don't know what it is??

You're not Hank Paulson in disguise are you?
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Oops! Typo! It should be retail forex. :eek::eek:
I heard once people say, the one you exchange your currency with the money changer is also forex, does that include in retail forex?
And, is it true that bucketshops are fake broker? The money will never go to the market rite?
 
Sounds like you're describing a Bureaux de Change facility, where folks exchange one currency for another. They make their profit by charging folks a commission for the service, & also via the exchange rate between the currencies being transacted.

Retail trading as far as you're concerned, will revolve around utilizing & transacting your deals thru a FX broker (if you're intending trading off the screen?).

You're there or thereabouts regards your interpretation of a typical Bucket shop yeah....they're an outfit who control the environment in which you play. Usually a fixed spread, no commission, "play to our rules or take a hike" shop, who take the other side of your trade & warehouse it-lay it (as a bulk order, according to their % book) as they see fit.

Do a google search if you're unsure about certain items of information. You'll generally unearth a decent selection of reading material relating to your querie.
 
flizzoe said:
What is forex? And is there any non-retail forex (or what ever you might say)?
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As you've already read above, retail forex is us little speculators who operate through brokers. That as opposed to institutional forex which is the banks, funds, and corporations who do direct dealing with and amongst each other.
 
The more I know, I realize that there are more things I don't know. In the past few years I just learn how to trade, systems, strategies, techniques and what ever. Now I wanna know more.

ampro said:
Sounds like you're describing a Bureaux de Change facility, where folks exchange one currency for another. They make their profit by charging folks a commission for the service, & also via the exchange rate between the currencies being transacted.

Retail trading as far as you're concerned, will revolve around utilizing & transacting your deals thru a FX broker (if you're intending trading off the screen?).

You're there or thereabouts regards your interpretation of a typical Bucket shop yeah....they're an outfit who control the environment in which you play. Usually a fixed spread, no commission, "play to our rules or take a hike" shop, who take the other side of your trade & warehouse it-lay it (as a bulk order, according to their % book) as they see fit.

Do a google search if you're unsure about certain items of information. You'll generally unearth a decent selection of reading material relating to your querie.
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Are u saying that, non bucket shops are brokers who always change their spreads? And I heard people complain that the bucketshops always chase stop losses.

Goggle search have lotsa ads and crap than what I need. If it is so simple, I won't ask here :):)

Rhody Trader said:
As you've already read above, retail forex is us little speculators who operate through brokers. That as opposed to institutional forex which is the banks, funds, and corporations who do direct dealing with and amongst each other.
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Thanks, you are really helpful. Something about history, do you know what actually Soros did that make Bank of England broke?
 
flizzoe said:
In the past few years I just learn how to trade, systems, strategies, techniques and what ever. Now I wanna know more.

Goggle search have lotsa ads and crap than what I need. If it is so simple, I won't ask here
Click to expand...

Not wishing to sound rude, but you're really gonna have to get your ass in gear sweetheart. 3 years into this gig & you're only now digging into the basic layers of how this circus works?? Wow!

Learn how to navigate & dig (research) around the net, it'll save you an awful lot of time & hassle.

Funny how when I tap in George Soros as a basic search, I get a whole chunk of interesting (??) crap related to the guy.

Do a search on here (& GOOGLE) for ECN or commission brokers etc....it'll offer info regards dealing desk (fixed spread shops) v/s variable spread straight-thru operators.

Roll your sleeves up & get to work. As with trading in general - the rewards come to those who push their mental boundaries whilst thinking (& acting) for themselves
 
ampro said:
Not wishing to sound rude, but you're really gonna have to get your ass in gear sweetheart. 3 years into this gig & you're only now digging into the basic layers of how this circus works?? Wow!

Learn how to navigate & dig (research) around the net, it'll save you an awful lot of time & hassle.

Funny how when I tap in George Soros as a basic search, I get a whole chunk of interesting (??) crap related to the guy.

Do a search on here (& GOOGLE) for ECN or commission brokers etc....it'll offer info regards dealing desk (fixed spread shops) v/s variable spread straight-thru operators.

Roll your sleeves up & get to work. As with trading in general - the rewards come to those who push their mental boundaries whilst thinking (& acting) for themselves
Click to expand...

Ya I know, that's why I wanna start learning now. Its never late to learn. But still, I received messages telling me just to ignore how this things work and just keep trading. Hurm, what ever~
 
OK so i'm a pretty simple kinda guy. Please bear with me.
If you deposit 200 and you get a leverage to make it 1000 and you come out short of 100 you need to pay the broker 100. Is that what stop loss is for ? couldn't you just make sure it wont go past a certain point where you run out of capital?
 
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