Best Thread Live Cable Trading
wasp
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Margin
Guys and Galls,
Now I know some of you use Oanda and hoping you can help me out of an embarrasingly confusing predicament which I shall kick myself once explained but it is giving me a headache
.
I currently spread bet and have opened an account with Oanda for numerous reasons, but not specifically margin, more 24hr trading and general improvements.
With capital spreads...
Account balance = £5000
trade per point = £2
Stop loss = 25 pips
max loss = £50
% risk = 1%
The max trade = £80 (balance divide by 60 - capital spreads minimum)
Now, Oanda...
Margin = 50:1
Account balance = £5000
Available untis = 250'000
15'000 units = £1 per point (roughly) ???
Maximum trade = £16 ???
I don't plan on using any of the margin available but this is confusing me, I don't see how 50:1 is better than capital spreads at all?
Main question 1. If, as in the above example, I was to trade with a 1% risk exposure (ie £2 per point) I'd trade with approx. 30'000 units and a 20 pip stop loss, this would be the same as the capital spreads scenario? I want to make sure margin calls will never happen!
Main question 2. If, I did want to trade at full 50:1, what would the maximum amount I could trade with a 5000 balance?
Cheers for any help...
Guys and Galls,
Now I know some of you use Oanda and hoping you can help me out of an embarrasingly confusing predicament which I shall kick myself once explained but it is giving me a headache
.I currently spread bet and have opened an account with Oanda for numerous reasons, but not specifically margin, more 24hr trading and general improvements.
With capital spreads...
Account balance = £5000
trade per point = £2
Stop loss = 25 pips
max loss = £50
% risk = 1%
The max trade = £80 (balance divide by 60 - capital spreads minimum)
Now, Oanda...
Margin = 50:1
Account balance = £5000
Available untis = 250'000
15'000 units = £1 per point (roughly) ???
Maximum trade = £16 ???
I don't plan on using any of the margin available but this is confusing me, I don't see how 50:1 is better than capital spreads at all?
Main question 1. If, as in the above example, I was to trade with a 1% risk exposure (ie £2 per point) I'd trade with approx. 30'000 units and a 20 pip stop loss, this would be the same as the capital spreads scenario? I want to make sure margin calls will never happen!
Main question 2. If, I did want to trade at full 50:1, what would the maximum amount I could trade with a 5000 balance?
Cheers for any help...
fxmarkets
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just click open a deal ticket and type in your size, on the euro its roughly 1200 sterling to open $100,000 so 20/25 per point should be ok on 5 k, cables margin is slighly more so it needs to rack up a few more points over euro, about 1.75 times guess..
so 5 pound a point on euro based on 20 point stop@2%, get your entry to a 10 point stop maybe on euro 2% risk £10.00 per pip. get it to a 5 point stop £20.00 per pip. or rather watch out for half tics but maybe use stop of 4.6 , hehe. 3.7 etc. lordy..
just open a deal ticket on each and type in size it will let you see how much per pip you can trade. on the ticket. 50-1 is more than adequate.
so 5 pound a point on euro based on 20 point stop@2%, get your entry to a 10 point stop maybe on euro 2% risk £10.00 per pip. get it to a 5 point stop
£20.00 per pip. or rather watch out for half tics but maybe use stop of 4.6 , hehe. 3.7 etc. lordy.. just open a deal ticket on each and type in size it will let you see how much per pip you can trade. on the ticket. 50-1 is more than adequate.
fxmarkets
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a point about leverage you can get 500-1 at places and spreadbet, but costs and the usual factors kick in especially if you short term it. quotes, fills, speed. 50-1 is prudent compared to spreadbets but the spread on euro is good. and some say 50-1 is high leverage.
its sensible.
comments have and do appear frequently about only 50-1 maybe they will increase to 100 one day. but as they say, you want to stay in the game long term think risk....
margin call, you wont get one unless the market moves talking euro again here roughly 120/140 points against at max per margin. so if you risk 20 points you should never get a call, but you will still have money in your account, they will just liquidate the open position .
its sensible.
comments have and do appear frequently about only 50-1 maybe they will increase to 100 one day. but as they say, you want to stay in the game long term think risk....
margin call, you wont get one unless the market moves talking euro again here roughly 120/140 points against at max per margin. so if you risk 20 points you should never get a call, but you will still have money in your account, they will just liquidate the open position .
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wasp
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Cheers for that FXmarkets,
Still a tad confused on the whole margin malarky though...
If I have 5k and wanted to trade 400:1, would I have to have the funds to cover it in my account or would they then be chasing me from NYC for the excess I could lose?
Still a tad confused on the whole margin malarky though...
If I have 5k and wanted to trade 400:1, would I have to have the funds to cover it in my account or would they then be chasing me from NYC for the excess I could lose?
fxmarkets
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not too sure I think it depends on the firms criterior ,but say if you stayed with capital spreads at £80.00 a point and the market gaps 65 points then you would be liable unless its a secured/guarenteed stop typically 3x fat spread min stop distance at some places then your leverage can be 100's to 1
so if you are overleveraged and the market gaps through then you will be liable , hence 50-1 is sensible, 400-1 may seem good bang for your buck but...
with Oanda because I use tightish stops the price has zipped straight through say 15 beyond a couple of times and i was expecting heavy slippage, but ive always been filled on my level, surprised cos I couldn't of traded the move , so I dont think you will get any margin call at 50-1 , 20 points, 400-1 though with a sloppy broker. .... dont know.
like Oanda say more than 50% of clients are still there 5 years down the road with them, so that says something. does sensible margin help, yes, and good spreads, reliable orders, yes. probably has a lot to do with it.
thinking about your 400.1 you would be chased for any shortfall for sure.
400-1 5k, £160-200 per point lol. im sure they would love people to use that 30 points and your £5 grand is gone... gaps 60 points your 5 k is gone and you owe them 5 grand on top.
Very scary. like the film " Gone in 60 seconds. "
so if you are overleveraged and the market gaps through then you will be liable , hence 50-1 is sensible, 400-1 may seem good bang for your buck but...
with Oanda because I use tightish stops the price has zipped straight through say 15 beyond a couple of times and i was expecting heavy slippage, but ive always been filled on my level, surprised cos I couldn't of traded the move , so I dont think you will get any margin call at 50-1 , 20 points, 400-1 though with a sloppy broker. .... dont know.
like Oanda say more than 50% of clients are still there 5 years down the road with them, so that says something. does sensible margin help, yes, and good spreads, reliable orders, yes. probably has a lot to do with it.
thinking about your 400.1 you would be chased for any shortfall for sure.
400-1 5k, £160-200 per point lol. im sure they would love people to use that 30 points and your £5 grand is gone... gaps 60 points your 5 k is gone and you owe them 5 grand on top.
Very scary. like the film " Gone in 60 seconds. "
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trendie
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zuke said:
good call, zuke.
you had the bottle to put money where your mouth is.
I also noticed the potential trade, ( from my perspective it was a "buy the dip" ), but I didnt have the bottle to put money on it. ( especially after my previous experience with an overnighter )
should have got up earlier, or I could have got it today.
Friday 13th - keeping a low profile from the boogeyman.
zuke said:
Scaled out 6 lots for 70 pips
. Ill leave remaining 4 lots to the following targets 7690, 7708, 7725 and (if we ever get there) 7748 or b/e.More than met my target for the nest few days with this trade so wont be in the market today. I will be trying to new strats out on 1 mini lot trades, so if you see me doing some weird trades (well more weird than normal!) then thats the reason why.
zuke said:Scaled out 6 lots for 70 pips
More than met my target for the nest few days with this trade so wont be in the market today. I will be trying to new strats out on 1 mini lot trades, so if you see me doing some weird trades (well more weird than normal!) then thats the reason why.
All targets hit except 7748. I have 1 lot running from 608. Will leave it to run to either b/e or 7748
