Jump to content

Wolfire

Members
 View Profile  See their activity

  • Content Count

    256

  • Joined

  • Last visited

Community Reputation

29 Newbie

About Wolfire

  1. Wolfire
    Is it possible for a true STP/ECN broker to provide 500:1 leverage? Banks typically provide maximum leverage ranging from 10:1 to 25:1 depending on a variety of factors ranging from credit worthiness to the currencies being traded. Greater than 30:1 leverage is unheard of in the Tier 1 (Bank) PB environment. Banks are very picky about who they will lend money to. As a result, a major money center Prime Broker would not accept a high leverage broker as a client, especially given the risks involved. If you hear someone marketing themselves as a "institutional liquidity provider" or "prime broker" and offering leverage greater than 100:1, don't be fooled; it's quite possible that they're using a market-maker/dealing desk model in some shape or form. Assume a client executes a USDJPY 5,000,000 trade at a leverage of 500:1. This trade will necessitate a USD 10,000 margin (5,000,000 / 500). To execute the corresponding matching trade with its bank liquidity provider at 25:1 leverage, the broker would need to use USD 200,000 (5,000,000 / 25) in margin with its prime broker. To maintain the same size trade, the broker must use 20 times more capital than the client.
  2. Wolfire
    Do you sell any EAs? I don't see any.
  3. Wolfire
    This system is very similar to something I currently use, but I've added the 3 and 6 ema to my system because I believe it improves it, so thank you.
FinanceHeaven

Sponsored by

Info

Any opinions or market advice expressed in the community sections do not necessarily reflect the views of FinanceHeaven or its affiliates. The comments and opinions expressed are those of traders who are either inexperienced or inexperienced. FinanceHeaven.net or its affiliates do not review or research the comments. If you choose to base your decisions or trades on the comments, you do so at your own risk. FinanceHeaven and its affiliates are not liable for any losses incurred as a result of using the content provided.

WARNING

FOREX trading carries a high level of risk and may not be suitable for all investors. Leverage increases risk and loss exposure. Before you decide to trade foreign exchange, think about your investment goals, level of experience, and risk tolerance. Your initial investment may be lost in part or entirely. Do not put money into investments that you cannot afford to lose. Educate yourself on the risks of foreign exchange trading, and if you have any questions, seek advice from an independent financial or tax advisor. Any data and information is provided "as is" for informational purposes only and is not intended for trading or advice. Past performance is not a predictor of future outcomes.

×
×
  • Create New...