Why do you limit the maximum drawdown on the account? - page 24

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LeoV:


I mean 100%?

So you are not using all of your funds - you are borrowing money from the brokerage company against your entire deposit, under the terms of leverage.

You are simply borrowing from the broker for your entire deposit under the terms of leverage.

I had no leverage on forex, no one takes any money from DC - it is specifically written in my agreement with DC in the odion of the phrase: you cannot get the currency you have bought. I.e. if you have a dollar-denominated depo and you supposedly bought euros, no one will ever give you euros. The game is played on the difference, on the movement of the asset and you do not have to buy anything.

All these so-called leverage is no more than the cost of a pip and that's all - the more "leverage" the more expensive a pip is.

 
The thing is that such a big leverage may be without interest, guarantees, heaps of necessary and unnecessary documents only due to the fact that you cannot cash the credit money, you can only engage in speculative trading. And the second nuance lies in the kitchen nature of the dealing room hiding under the guise of a betting license, which does not put each transaction on the market.
 
faa1947:

There is no leverage in forex, no one takes any money from the CD - it is specifically written in my contract with the CD in the phrase: you cannot get the currency you bought. I.e. if you have a dollar-denominated depo and you supposedly bought euros, no one will ever give you euros. The game is played on the difference, on the movement of the asset and you do not have to buy anything.

All these so-called leverage is nothing more than the cost of one pip and that's it - the more "leverage" the more expensive the pip.


Yes, and the deposit is only as a pledge in the betting between the brokerage company and the client (not only in the kitchen scheme). So keeping an extra amount in the account is just to increase the collateral, not to put it into a trade. The deposit must be sufficient to maintain the current trade, so as not to be shut down by a margin call by interrupting the trade in a place not provided for by the system
 
Avals:

Yes, and the deposit only as a pledge in the betting between the brokerage company and the client (not only in the kitchen scheme). So keeping an extra amount in the account is just to increase the collateral, not to put them into a trade. The deposit should be sufficient to support the current trade, so as not to close on a margin call by terminating the trade in a place not intended by the system.

The very name of the thread is very scholastic: why do we limit the drawdown, because we do not want to lose all the money. Why the sun is warming - because it's on a bob!

In the very first post, there has been a substitution of concepts: from account loading, for some reason, drawdown is derived. Why should it? Depo can be drained both at 100% load and at 1% load - it's a matter of time and the properties of the TS. A draining TS is sure to lose, what is not clear here.

Drawdown - is a risk and if there is risk management in TS, then depending on this management we obtain the result, which can strongly extend the life of hopelessly losing TS and from almost losing make profitable. Why do we have to put everything in one place?

 
sever32:

This is about the trader, about the investor the same, invest 100% of the funds that you are ready to lose. i.e. not 100 c.u. with a promised 20% drawdown, but 20, with a 100% drawdown.

You do not need money for investments, you do not need money that does not mean anything to a man. What kind of profit can be derived from them - the same, insignificant. Do we need it? If someone trades for sport, they may suffer a drawdown on all 100 kopecks of their micro account, but they do not need money with such an approach.
 
faa1947: no one takes any funds from the brokerage company

Ok, then explain how is it possible to open 1 lot (100 000 dollars) with a deposit of 1000 dollars? Where does the money come from to open such a position?
 
LeoV:

OK, then explain how is it possible to open 1 lot ($100,000) with a deposit of $1,000? Where does the money come from to open such a position?
Where does the money go and where does the debt come from? The Prophet Samuel answers questions from the public (c)
 
Figar0:
It's not investment, it's pampering.Money that you don't feel sorry for, it's money that means nothing to a person. What kind of profit can be made with it - the same, insignificant. Do we need it? If someone trades for fun, they may suffer a 100-kopeck drawdown on their micro account, but they do not need any money with such an approach.

As you can see, everyone has a perverted understanding of the 100% loss limit.

For a skydiver, the loss limit is the same, but that does not mean he is a kamikaze.

Why does a football team need 11 players if only two play?

 
LeoV:

OK, then explain how is it possible to open 1 lot ($100,000) with a deposit of $1,000? Where does the money come from to open such a position?
It comes from nowhere, exactly as it does not go anywhere. Leon, come on - this is the basis of margin trading. If you initially agreed that when you open a deal you must close it on the reverse, and the guarantee of the obligations performance on this deal is your real money, then you will be given to open a deal even for a billion dollars, if the deposit is enough to cover possible losses from this deal. No one takes or gives credit-deposits from anyone. And the leverage Fa bent, it just is, it can not not exist, because it and determine how much bigger transaction can be allowed to open on the specific markets relative to the pledge. For if the deposit is enough for 1 pip of movement of an instrument, who needs such adventures, who will take the risk?
 
I've basically got what I wanted. Thank you all.
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