Spreads and Margin Leverage Trading Margin & Leverage ...

I have a one-off question about trade losses and ending up in debt

So Im thinking about learning the Forex trading, using Oanda most likely. Anyway, this is what I was wondering...
Ive done very little reading on this so bear with me. My basic question is, say I throw 250$ into my account. Can I loose more money than that and then be in debt to the broker? This is assuming that I use stop loss.
If it IS true, that would be only if the market crashes hard?
I know this is a noob question, but If its possible that I can end up in say 1000$ debt over $250 then to me its not worth me dipping into. It seems rare though.
Thanks guys!
submitted by MOEB74 to Forex [link] [comments]

What are the best brokers for building a small account? If I use a lot of leverage, will short-term price swings wipe out my account if I'm swing trading?

submitted by StockChartist to Forex [link] [comments]

Crypto Trader Turned Forex, Need Help I have 100k

Hello im a crypto trader, ive made many trades from october to now, from 400$ to 4.2 million, i now want to start trading the forex with 100k
My method of trading involves using 50:1 margin with all 100k on leverage, (ive tried this on the demo) this how i did in crypto, i was extremely successful with demo accounts
My question is will i able to duplicate the same results using platforms like OANDA or should I look somewhere since i need my orders to be filled semi instantly and i usually sell at 10k profits usually so 3-10 pips,( is this feasible with my margin on a platform?)
Ive tried searching online but most people dont seem to follow this strat
EDIT: i dont really reddit much and just made this account when i was young and a troll so i dont know if im doing this reddit thing right i receive a ton of usefull information and help and even some job offers, some people actually recognize who i was from the crypto community , im going to continue my research and probably enter the forex market; the latest in june, so expect an update from me mid/late summer
Thank you all for the help and information you provided! i hope it helps others who had a hard time finding stuff like this online like me!
submitted by LyteuRinTrouble to Forex [link] [comments]

Backtrader + IB

I have spent over a week learning and implementing Backtrader to backtest and then trade forex with IB. At least once during that process I read IB's leverage/margin policy and concluded I can trade major forex currencies with leverage of 20-50:1.
Today I discovered they don't allow leverage for forex with U.S. clients. I am really upset.
I see backtrader supports Oanda but their spreads are lousy and my algorithm will involve lots of short trades -- I need tight spreads.
Any suggestions? Do I need to go offshore?
submitted by leecallen to algotrading [link] [comments]

Currency exposure offsetting for margin positions

Hi All,
I unfortunately have zero experience in the forex markets, and I am unsure if something like this has already been asked and answered a dozen times, but I have a question I am hoping you can help me with.
I would like to know if there are forex brokers out there that provide margin based on net currency exposure and not just currency pair position exposure. For example, say I have the following positions:

Pair Price Position (+ for long; - for short)
EURUSD $1.1552 +€100,000
GBPUSD $1.2914 -£89453.3
EURGBP £0.8937 -€100,0093

I apologize if I screwed up the quoting conventions, but the idea is that I have entered into three leveraged positions with effectively net zero exposure to any of these currencies. If these positions could be settled as is, I would be left with close to a zero net change in my brokerage account. I am wondering if there are forex brokers that will give a trader back some margin to be used to open other positions when existing positions like these are open. I understand that there is still some risk that one of these pairs can become dislocated from the market, but I would assume that to be swiftly corrected by arbitrageurs. If this is a stupid question because many brokers do this (I only briefly looked at OANDA's margin requirements), please point out to me a link or document that goes over the mechanics of this. If no brokers do this, I am curious to know why you think they don't.
submitted by funkinaround to Forex [link] [comments]

Trading overseas? Volume/Time related.

So I've been interested in trading for awhile. Dabbled in stocks, fx, and crypto in the past, but want to take it more seriously. I'm trying to decide on which market or product to focus on first. But, I'm currently living in Japan which severely limits what markets I can trade due to market open/close and time differences.
Stocks are off the table. I've narrowed it down to: futures, forex, or crypto. I'm using http://forex.timezoneconverter.com/ as a reference
Futures - Seems appealing given the basically 24/5 markets. But volume looks really low during off hours. NYSE open is around 9pm-5am local time, which does work well since I do have a day-job, but worry I may get stuck in a position for hours and lose a bunch of sleep. I like being able to focus on a single future, like the ES. Commissions are relatively low as well, with good leverage. Currently the most appealing option.
Forex - Real 24 hour markets. Volumes are high almost all-around, and similar to futures can focus on a single pair such as USD/JPY or USD/EUR at the beginning. Unfortunately as a US person I'm not allowed to open accounts with many ECN brokers. Oanda seems like the only real option, but they are a MM. Anyway spreads/commissions are big here and dependent on the broker, and I can't seem to find any other good brokers for FX which allow US clients. Maybe I'm searching for the wrong things?
Crypto - The dark horse. I would 100% be day trading crypto if: exchanges weren't crappy compared to real trading platforms, nor was I worried about hacking. Margin rates for shorting crypto also sucks, and given the current bear market it seems stupid to get into this only being able to trade long.
Given my situation, what would you trade?
submitted by Zerve to Daytrading [link] [comments]

Can you trade forex without using margins?

I'm American and specifically asking about using FXCM or Oanda as an individual investor. Since a lot of people here use them, do you know if I can trade pairs without using margins, or at least with minimal leverage?
My reason for getting into forex is that I want to take a position against China and short the yuan, but I am not looking at this as a short term position, I am thinking I might hold it for 2-3 years. I don't want to rack up a bunch of interest/fees. I would rather just buy outright shares of USDCNY or USDCNH as if it were a stock, and if the yuan drops vs the dollar, the price goes up and I make money, or vice versa.
So am I crazy or is this possible?
submitted by pewpsprinkler to Forex [link] [comments]

Two important dates

Normally, I would not post this as we should all be adults and know how to use a forex calendar and read the news. However, a rash of posts both here and abroad on the net that essentially are asking how to get megapips off of the Brexit vote have me concerned, so here we are. Also, people seem to be overlooking the big elephant in the room, the June FOMC.
Short version:
WED JUNE 15 1400 EST FOMC STATEMENT Whether you like it or not, the USD touches everything you do, like those bad decisions you made in University.
THURSDAY JUNE 23 UK BREXIT VOTE This really could be underwhelming.... or it could be horrific.
If you are a n00b, stop trying to get rich off of the Brexit vote. You need to concentrate on successful, positive trades, not big wins. Go gamble if you want that rush. The Brexit vote is one of those events that can cause such precipitous damage to accounts that Brokers are limiting retail leverage and raising margin rates: (from Oanda)
Dear Huachi
During events such as the upcoming Brexit referendum, market movements can be significant leading to the potential for large profits, but also large losses. To help ensure our customers are more insulated from such movements, we will be temporarily lowering the maximum leverage available on GBP pairs to 20:1 after the market close on June 17, 2016. The affected pairs will return to prior leverage levels after the market close on June 24, 2016.
As a result of this change, you may need to close trades or add funds to your account or risk a possible margin closeout if you currently have an open GBP positions with higher levels of leverage and do not have enough funds in your account to cover the increased margin requirements. To determine the impact this change may have to your margin, you can use OANDA’s margin calculator.
Margin rates on pairs not containing GBP will not be affected.
If you have any questions, you can contact our Client Experience Team whenever markets are open.
Regards, The OANDA Team
And FOMC? The June FOMC is not just any FOMC, it will really be a bellwether for 2016 for the Fed's direction with interest rates until election and Christmas. Will they stick to their word and raise rates? Or change course and have a flat rate, showing their weak hand? There are estimates in both directions (some showing preciptious cliffs, some showing seismic movements back and forth), but again, unless you are confident in your analysis, market intel, and skill set, pay attention because the June FOMC has a potential for a radical whipsaw.
I'll take this down in a few days, it is not a soapbox, but there is some real shit in the market right now that has capacity to wipe out accounts. Noobs watch out, you pros too!
~Huachi
submitted by El_Huachinango to Forex [link] [comments]

Help me to choose a broker -- Oanda, FXCM, forex.com, FXDD

Hi all,
I posted this thread on a Forex forum, I re-post it here hoping to get more advice.
I live in China, and I'm a newbie to Forex trading. I plan to deposit 5,000 USD to experiment Forex trading after I get used to the demo account. After I'm OK with 5K USD, I may invest not less than 10K.
I'm struggling to choose a broker, here are my criteria,
1, Allow hedging. I'm 100% wanting this. Indeed I'm not going to hedge the same amount of money at the same time to earn quick money (which is often used in big news event). What I want to do is, I have a long term position which will be there for several weeks, then I do some short term positions (intraday or several days). That's possible that I have two positions in two directions at the same time.
2, Money safety. During my Googling, I found that some brokers close a trader's account just because he/she earns too much money.
3, 100:1 leverage. 50:1 is not too bad but 100:1 gives me more flexibility.
4, Prefer to NDD (ECN or STP), but DD and MM is acceptable if money safety is guaranteed.
5, Regulates with NFA or FCA.
6, Support depositing using credit card. This is cheapest way for me, at least cheaper than wire transfer.
7, Easy to open an account. I prefer to open an account via internet only so I don't need post a lot of certifications to the broker.
The other points except 1 are tolerant, but I really want point 1 and I think it will be important to me.
Now comes to the brokers I've done some research on. I've checked a little with Oanda, FXCM, forex.com, and FXDD.
Oanda, the most money safety one. 50 leverage. However, it doesn't allow hedging.
All other brokers in my list are not as same money safety as Oanda.
FXCM, the one that's really annoying me is the margin. Why margin for a lot of EURUSD is $750? That's really weird and is not connected to the real price. Can any one explain to me?
Forex.com, as big as FXCM, but in the event that ECB put down the interest to 0.25% at Nov.7 this year, a lot of Chinese traders get network error and lost money. That scared me.
FXDD, not as old as Oanda, and not as big as FXCM and Forex.com, and registered in Malta...
So, what's your advice of a proper broker for me? The one not on my list is OK too.
Thanks
EDIT: another disadvantage of Oanda is that they have 6 candles a week, but it's a trivial problem since I can use other broker's MT4 for technical analysis.
submitted by wqking to Forex [link] [comments]

How to calculate the margin and pip value of CFDs (such as Stock Index), specially, Oanda CFD?

Hi all,
To extend my vision, I start studying CFDs, such as Stock Index, Oil, Commodity, etc. Unlike Forex, I don't understand how margin and pip value is calculated for Stock Index and other CFDs.
I tested with Oanda CFD, seems the margin for 1 unit UK 100 is about $10000, and 1 unit Brent Crude Oil is about $50. Seems the margin for BCO is just the price of the oil, but how about the Stock Index, what's the price?
Thanks
EDIT: the margin I talked above is the total money required, not leveraged. And the leverage provided by Oanda is 50. So the leveraged margin for 1 unit BCO is only $1.
EDIT2: Though on Oanda forum nobody answered my question about what the multipliers are, eventually I realized for fxTrade the multipliers are just 1, but different conttacts are quoted in different currency. FTSE is quoted in GBP, so 1 contract value is 7000 GBP, which is about 10000 USD, which is exactly how I observed. And the pip value is always 1 quote currentcy. For FTSE, the pip value is 1 GBP, which is about 1.5 USD.
submitted by wqking to Forex [link] [comments]

Forex Leverage, Margin Requirements & Trade Size - YouTube Oanda - Changing Funds or Leverage - Forex Trading Tutorials & Strategy What is Leverage and margin in Forex?? - YouTube Lesson 10: All about margin and leverage in forex trading ... Introduction to Margin and Leverage - YouTube FOREX Leverage and Margin for beginners. - YouTube Oanda - Changing Funds or Leverage - YouTube

Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the Margin Available in your account will limit the size of the positions you can open. Leverage: The reciprocal of Margin. For example, 2% margin is the same as 50:1 leverage. The maximum leverage allowed is determined by the regulators in each ... Governed by the National Futures Association (NFA), OANDA Corporation establishes margin rates and maximum leverage at their discretion. You need sufficient margin (collateral) in your trading accounts to cover any losses you might incur on your positions. See OANDA's margin rules for information on margin, margin closeouts, and how they can affect you. Margin and leverage are among the most important concepts to understand when trading forex. These essential tools allow forex traders to control trading positions that are substantially greater in size than would be the case without the use of these tools. At the most fundamental level, margin is the amount of money in a trader's account that is required as a deposit in order to open and ... The Commodity Futures Trading Commission (CFTC) limits leverage available to retail forex traders in the United States to 50:1 on major currency pairs and 20:1 for all others. OANDA Asia Pacific offers maximum leverage of 50:1 on FX products and limits to leverage offered on CFDs apply. Maximum leverage for OANDA Canada clients is determined by ... Learn more around margin and leverage and how OANDA offers competitive margins within 70 different major and minor currency pairings. We use a range of cookies to give you the best browsing experience. By continuing to use this website, you agree to our use of cookies. OK close. Choose another country or region to see content specific to your location Trading expand_more. Products & services ... The amount of leverage available to you is also dependent on your account status, trading volume and the asset types you are trading. As a trader, you must fully understand the implications of using leverage and OANDA has a whole page of information relating to the subject and margin trading in general, which you should read before proceeding. The changes are also coming at the request of US regulators. At the same time, OANDA will be lowering the margin for its CHF pairs, including the following alterations: CHF pairs from 5% (maximum leverage ratio of 20:1) to 3% (maximum leverage ratio of 33.3:1) MARGIN. OANDA takes a form of security (or deposit) against any losses that you may incur when you trade, this collateral is typically referred to as margin. The margin needed to open each trade is derived from the leverage limit associated with the asset class that you wish to trade. LEVERAGE. Leverage allows you to enter into positions larger than your account balance and trade whilst only ... OANDA takes a form of security (or deposit) against any losses that you may incur when you trade using leverage, this collateral is typically referred to as margin. Both margin rates and maximum leverage ratios vary depending upon the instrument traded, and whether you have been categorised as a retail or professional client. Most forex brokers allow a very high leverage ratio, or, to put it differently, have very low margin requirements. This is why profits and losses vary greatly in forex trading even though currency prices do not change all that much — certainly not like stocks. Stocks can double or triple in price, or fall to zero; currency never does. Because currency prices do not vary substantially, much ...

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Forex Leverage, Margin Requirements & Trade Size - YouTube

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