I am able to open more places (and absorb more red pips before a margin call) w/ greater leverage.
It WILL make a difference to some people's trading methods/styles. (Me, for one)
Originally Posted by ;
I am able to open more places (and absorb more red pips before a margin call) w/ greater leverage.
It WILL make a difference to some people's trading methods/styles. (Me, for one)
Originally Posted by ;
My issue is that although there may be tens or hundreds of thousands of individuals contrary to the law, which the resistance will not be arranged.
In war, you will need direction. And it would be nice to have a well defined business fighting against this. Alas, with no egy and a few thousand petitions, I don't see it being almost as powerful.
Originally Posted by ;
A 10 pip loss on 1 lot is $100, regardless of what leverage you're using.
Problem is sold with the abuse of high leverage.
$1,000 and 500:1 leverage means you can trade 5 lots at a time. 20 pips from you and your account is now gone.
Nope.... If it is 10:1 vs. 100:1, the margin requirement would be 15000 vs. $1500 to control 1 lot.
That means you have $13500 additional red pip absorbtion dollars in the account, or the equivalent of 135 pips.
Originally Posted by ;
Yes that is correct, but 10 pips with 1 lot = $100 no matter what.Originally Posted by ;
I know that the risk is greater with your money backing the trade (as per your other thread, a gap against sending you into a negative balance for example).
Sorry, hit submit instead of preview.
The example you submitted td with lower leverage, is still blatant abuse of leverage.
It's the traders responsibility to know about such risks in this particular game - i.e. gaping past your stop.
If you traded 0.1 of a lot in an account balance of $15k, that means a 15,000 pip reduction has to occur to wash you out. I might be overlooking something, but I have never seen a difference of this magnitude.
Abuse it, you risk losing it. Plain and simple.