Help With Margin Calls
The system I use has a 30 pip stop loss. I have always traded about 7 lots with 100:1 margin and have never had a margin call. Now that the FINREG has taken place I'm trading 6 lots and am getting stopped out after about 5 pips. How can I use the margin amount (50:1) and pips of stoploss to determine the lot size I should be using? Simply decreasing my lot size to 1 would give me 6 times more pips before the margin call (no need for a SL the Broker would liquidate at that point). But using my exisating tp would have me only profiting 1.4% of my account for a winning trade, almost not worth the time.
Welcome to the world of idiotic governmental interference and regulation. One can either double the amount of your deposit or cut your trade size in half. I am dedicated to doubling my account by cutting my trades in half and saving everything until my account has doubled.
good luck,
gcgman
if you're getting margin called every trade, then you are risking too much. I mean 7 lots??? that's 700,000 units, which means you lose 70 dollars per pip if your trade against you.
If EUR/USD's spread is 2 pips, then you're immediately down 140 dollars when you enter.
Jesus... if you think 1.4% of your account is a small win, then consider this..
if you were to win 1.4% of your account per trade and you trade once a day, you'd have more than 200% gain a year. i don't know about you, but that is huge. i have yet to see someone earn 200%++ a year return on investment. heck even real traders dont earn that much.
Firstly, I trade a micro account so the numbers are tenthed. The system I use doesn't trigger every day it actually triggers once weekly. Now 1.4% weekly would be great consistently, but even the best systems have drawdowns and losing trades, as mine does.
The reason most big traders have a harder time is most systems are not scalable. Most fund managers will tell you it is easier to make $10,000 on $100,000 account than it is to make 10 million on 100 million. I feel mine would be the same I'm up over 25% since August on a very small account, If I were to bet the farm and put 50k in my account, collusion among the brokers would mysteriously take me down.
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The system I use has a 30 pip stop loss. I have always traded about 7 lots with 100:1 margin and have never had a margin call. Now that the FINREG has taken place I'm trading 6 lots and am getting stopped out after about 5 pips. How can I use the margin amount (50:1) and pips of stoploss to determine the lot size I should be using?
Simply decreasing my lot size to 1 would give me 6 times more pips before the margin call (no need for a SL the Broker would liquidate at that point). But using my exisating tp would have me only profiting 1.4% of my account for a winning trade, almost not worth the time.