Equity Protection

[cscott]

Hey all, I'm completely new to the FX market and like a lot of people I have some of the questions/concerns. I've been doing some reseach and like most newbies I'm concerned about the margin/leverage of the FX market. My concern is about going megative in my account and being forced to place more money back into an FX account. I found this blurb on forexcentral.net about interbankFx...

"Equity Protection: With an Interbank FX forex account, clients can never lose more than their deposited funds."

My question is, is this true? I'm I trade badly and lose all of my $1000 deposit, then oh well it was money I didn't want to lose but at least I'm not being totally devastated. I just want to make sure that if the currency values really go in the opposite direction I'm not going to have to dive into my long-term savings to cover the margin.

Thanks in advance!
Scott

[TheKPro]

with 1k .. dont bother dude ..

if u are much more liquid however .. i would recommend u give it a go ...

ideal FX .. 25k account ..

u can get it going wit 5-10k though too ..

[wolf825]

Originally Posted by cscott

Hey all, I'm completely new to the FX market and like a lot of people I have some of the questions/concerns. I've been doing some reseach and like most newbies I'm concerned about the margin/leverage of the FX market. My concern is about going megative in my account and being forced to place more money back into an FX account. I found this blurb on forexcentral.net about interbankFx...

"Equity Protection: With an Interbank FX forex account, clients can never lose more than their deposited funds."

My question is, is this true? I'm I trade badly and lose all of my $1000 deposit, then oh well it was money I didn't want to lose but at least I'm not being totally devastated. I just want to make sure that if the currency values really go in the opposite direction I'm not going to have to dive into my long-term savings to cover the margin.

Thanks in advance!
Scott

Yes it is true--all you can lose is what is deposited in your account. Accounts that fall below the required margin balance of the broker are automatically closed out if you have an open trade.

Point of advice--Do NOT risk that much on ANY trade. If you have 1000$ in your account, the most you should trade with and put on the table at any one time is $250.00.

good luck....
-w

[wolf825]

Originally Posted by TheKPro

with 1k .. dont bother dude ..

if u are much more liquid however .. i would recommend u give it a go ...

ideal FX .. 25k account ..

u can get it going wit 5-10k though too ..

You can trade in Forex with $1000...just cannot expect to make a fortune with it. You can trade with as little as $250 in an account--consider it practice tho... I would suggest folks Demo trade for at least 3 months priro to risking any real capitol. It takes time to learn to trade...whether you want to risk money or demo money--thats a personal choice. The larger the account the more money you can make-however the more money you can lose.


-w

[cscott]

Thanks all for the feedback and information. I've been using the demo account from fxcm for a week or so, I definately don't feel like I ready to use real money and I'm sure I'll spend at least 3 months before opening a real account. Thanks again, you guys have been very helpful.

Scott

[wolf825]

Originally Posted by cscott

Thanks all for the feedback and information. I've been using the demo account from fxcm for a week or so, I definately don't feel like I ready to use real money and I'm sure I'll spend at least 3 months before opening a real account. Thanks again, you guys have been very helpful.

Scott

You're quite welcome. Everyone on here is glad to help so if you have any further questions or difficulties, don't hesitate to post for some help.

-w

[xspowerx]

Originally Posted by TheKPro

with 1k .. dont bother dude ..

if u are much more liquid however .. i would recommend u give it a go ...

ideal FX .. 25k account ..

u can get it going wit 5-10k though too ..

Negative on the 25k....

$500 is just fine but don't expect to make $5,000 in a couple of days!!

[tippytwo]

PAPER TRADE!!

I can not say this enough. With equities, you can possibly get by not paper trading, but in the forex you HAVE to paper trade.

The volatility on these damn things are crazy. I lost $900 in a demo account in 5 seconds(And that was with an initial account investment of $3,000). People are not kidding around or exaggerating when they suggest paper trading for a few months before going live.

Learn how the market trades and what times of the day big moves are made and when the market is more laid back.

Make sure you set a stop loss for EVERY trade, no matter how dull the market looks, it could go crazy all of a sudden so make sure you protect your trades.

Oh yah, make sure you have a working knowledge of TA.

-T2

[gdaddy]

Yeah I setup demo accounts on Interbank and Northfinance (who I'm in the process of opening a real account with) with about $1500-2000 which is what I plan on doing live with as well. You don't need $25K, but of course that helps for big wins and big losses. On my friday trade that I ran

You better have a REAL money and risk process in place, adhoc will not suffice and you'll be out of $$$ super fast. 2-5% of total buying power on any one trade is a good basis when you are new, so here is an excerpt from another forex site I'm part of, and it's very good advice:

MONEY MANAGEMENT
Good money management means being conservative and using no more than 10x's leverage on any one entry. How do we calculate leverage?
1x's leverage = your account equity x 1
10x's leverage = your account equity x 10

For example:
10x leverage on a $1,000 account = 1,000 x 10 = 10,000
This means you can trade 1 mini lot

RISK MANAGEMENT
Rigid risk control is one of the key elements in a good trading strategy. A "low volatility" risk system provides extraordinary returns.
You can easily calculate your risk as:
(Account Balance) * (Percentage to risk)
2% risk on a $1,000 account = $20
You may risk 20 pips

3% risk on a $1,000 account = $30
You may risk 30 pips

I'm on all the forex forums (forex factory, money maker group, forex-tsd, etc) and I have read everyone's strategy and success failures. I have tried so many metatrader indicator strategy's that I cannot count them all, nor the countless late nights studying each one's success/failure rates on historical charts. Find one that you think will work, settle on a timeframe that you feel comfortable with (the 1min charts for scalping won't work with most brokers live accounts, so get over that like I had to) and then execute paper trades on "your system" till you iron out the kinks.

I have done better on my demo account than I would have thought, but only as of late since my results in the beginning were all over the board as I tried scalping on 1min charts, tried the braintrader system but modified some of the MT4 indicators to my liking, etc. Now I have switched to 5 and 15min charts and I'm doing better, so go for it and keep us all posted!

[mister_doodi]

So Doodi is trading in an investment group with about $45k currently and we used at most 23.10 standard lots for less than $24k. I've always felt comfortable with the 50% high mark. Do you think it's too much or enough.

How much does everyone else trade with.

Discuss.