Flexible leverage vs fixed leverage

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hi to all

i have new idea to cope up with fixed leverage...

the fx brokers should offer option to traders to place orders only along with stop losses..i.e no order will be accepted with out stop losses..

then the broker will verify whether the traders a/c have credit balance that equals to stop loss amount or not.

let me explain the same by an eg:

suppose i want to place buy order of EUR/USD for 10 mini lots with 15 pips as stop loss ..then the only margin required to place that order will be only usd 150 $ ,where as at present i need to have 500 usd +150 stop loss amount totalling 650 usd in my a/c...(if leverage is 200:1)..

this additional margin apart from stoploss amount is badly affects return on my capital...

i hope the brokers will be able to give that option to placing orders only with stop losses...

any discussion on this is welcome..

bye

shwetha

 

why does this need to be a rule that the broker sets? Why don't you just make sure that next time you put on a trade it includes a stoploss?

 

hi

what i mean to say is broker is collecting our stoploss amount in advance by earmarking that in our a/c and allowing us trade, without any further deposit..

eg i have 100 $ in my a/c ,i will place 5 mini lots of eur /usd to buy with stoploss of 20 pips....

where as in the present scenaro i need to have $350 in my a/c to place the same order with 20 pips stoploss...

i hope it clarifies now..

 

IS LEVERAGE LIMITED 1:500 investing 10 billion dollars

hi,

I wanted to know if leverage can be limited for certain investors. For example, if a financial organisation invests 10 billion dollars into the forex market using a cyprus based broker with a leverage of 1.500 then the 10 billion dollar translate into 5 trillion dollar.

5 trillion dollar is above the daily forex volume. So how can an organisation invest 10 billion dollar into a forex market using the 1 to 500 leverage? does this mean leverage is limited and not everyone can make use of it?

thanks

 

why has my question moved to this section? my question is totally unrelated to the topic 'flexible vs fixed'.

forum admins

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