Spreads and Margin Leverage Trading Margin & Leverage ...

Need some legitimate risk management advice

Brand new to forex, after messing around with stocks and ETFs for a year on robinhood.
In trying to learn about this strange new world, seemingly every article warns me that trading forex is the fastest route to poverty, that I'll lose every dime I have and that I'm better off buying lottery tickets, UNLESS I have a risk management plan.
That's all good and well, but it seems hard to find suggestions on how to actually manage my risk. So far what I have found is either unconvincing, or I just flat don't understand what is being explained. So I've landed here.
Reading the Forex FAQ, in this sub, the advice is to use a very small amount of capital when starting off, and practice live trading from there. If then recommends a formula to use in order to calculate risk, which seems like quite a bit of running calculations for every single trade that I make. Is it really the case that every Forex Trader that manages risk runs a series of calculations for each and every trade in order to figure out pip value and leverage amount, such matter and what have you?
Second problem, before even getting to the risk management section of this Subs FAQ, I'm told to read The Beginner's Guide on baby Pips. Babypips says that when you first start off trading you should not start small because then you will never be able to weather times of drawdown. They recommend something like an initial deposit of $20,000 or 50,000, and saying that if you don't have that much then build up your savings and come back the Forex when you have that to drop into the market. Are you kidding me?
My original plan before reading either of those guides was to deposit $300 and use something like a 10 to 1 or 20 to 1 Leverage.
The part that I'm hung up on which really baffles me and I need some help understanding is everywhere seems to say that I should only risk one or 2% of my account. I don't really understand what that means.
My trading app, OandA allows me to set default trade settings. One of them is trade size, which I can select an option "%Lev NAV" In all of my general Trading I have kept this number at 100, assuming that it is simply using 100% of my account for each trade.
I am also using a system in order to Define very specific entry points with a one-to-one risk reward ratio, setting a stop loss and take profit Target, usually between 9 and 60 Pips in size, depending on the instrument. Thus far, each trade that I have won usually amounts to a 3 to 8% change in the demo account value, which seems comprable to what I was experiencing with stocks and ETFs back on Robinhood. For the last 4 trades I've made, I'm up 15%.
Do I need to adjust this % Lev NAV down to 1% instead of 100? Or do I really need to download a pip value calculator app and make a determination after solving some arithmetic? I just can't seem to figure this out, and different sources use the same words interchangeably yet differently. When risking 1% of my account, does that include leverage, or not, in the trade? And if the most anyone recommends to risk in a trade is 1-2% then why use leverage at all? Won't the returns on 1% be so small as to be negligible? I don't seem to understand how it could possibly be Worth while to spend all that time trading... 1℅ of $300 is three bucks. As I understand it, that would allow me to buy 2 units of the EUUSD... there's no way that could be right, right?
Thanks for your patience and for reading this whole, chapter-length, question of a post.
I look forward to some clarity. I don't know how to switch to live trading, and the demo account does nothing to simulate leverage.
submitted by rm-rf_iniquity to Forex [link] [comments]

Crypto Trader Turned Forex, Need Help I have 100k

Hello im a crypto trader, ive made many trades from october to now, from 400$ to 4.2 million, i now want to start trading the forex with 100k
My method of trading involves using 50:1 margin with all 100k on leverage, (ive tried this on the demo) this how i did in crypto, i was extremely successful with demo accounts
My question is will i able to duplicate the same results using platforms like OANDA or should I look somewhere since i need my orders to be filled semi instantly and i usually sell at 10k profits usually so 3-10 pips,( is this feasible with my margin on a platform?)
Ive tried searching online but most people dont seem to follow this strat
EDIT: i dont really reddit much and just made this account when i was young and a troll so i dont know if im doing this reddit thing right i receive a ton of usefull information and help and even some job offers, some people actually recognize who i was from the crypto community , im going to continue my research and probably enter the forex market; the latest in june, so expect an update from me mid/late summer
Thank you all for the help and information you provided! i hope it helps others who had a hard time finding stuff like this online like me!
submitted by LyteuRinTrouble to Forex [link] [comments]

Backtrader + IB

I have spent over a week learning and implementing Backtrader to backtest and then trade forex with IB. At least once during that process I read IB's leverage/margin policy and concluded I can trade major forex currencies with leverage of 20-50:1.
Today I discovered they don't allow leverage for forex with U.S. clients. I am really upset.
I see backtrader supports Oanda but their spreads are lousy and my algorithm will involve lots of short trades -- I need tight spreads.
Any suggestions? Do I need to go offshore?
submitted by leecallen to algotrading [link] [comments]

United States forex with better than 50:1 leverage

Does anyone know of a good forex broker that offers better than 50:1 leverage? Right now I'm using Oanda but 50:1 isn't that good.
submitted by damnyoukid to Forex [link] [comments]

Help for forex on oanda

Hi im new to forex and will be using oanda to do my forex things. So as of now I am getting familiarwith the service by using the demo mode. But i have a few question.1-How do insert a line on my chart just for visual purposes for me.
2-how does leverage work on this website, am i force to use it as it is 50:1 and the lowest option I see is 10:1.
submitted by Forexnoooob to investing [link] [comments]

Reasonable leverage for beginners

I'm just starting to learn about forex and have created a demo account at oanda, where there's an option to select my leverage level. I think that I shouldn't go for 50:1 because I want to trade as close to what I'd do in a real account. The lowest I can go is 10:1. Is this recommended instead?
submitted by solaradmin2 to Forex [link] [comments]

Need help please!

Hey everyone!
I have been studying forex and practicing in a demo account for about a month and a half now and I think I'm ready to open a live account. I have been trying tons of strategies and I think I found a great one that has been working for me, pretty simple (It involves MACD crossover, support/resistance and 21 moving average line).
I'm not like most people who just dump money into a forex account and actually expect to make thousands right away. I studied hard, slaving away forums, websites, youtube videos trying to figure everything out and I think I'm ready.
I started with 500 USD in my demo account and made 398.52 in the first day when I used my 'perfected' strategy (leverage 1:200).
I just would like some advice on what broker I should use. I see so much bs online, and I would really appreciate your advice. I would use OANDA but it only has a leverage of 1:50, and I want to use 1:200 LOL. I saw some stuff on Tallinex, but there's not too much on it.
Any help will be appreciated!
submitted by positivemale to Forex [link] [comments]

Hopeful new trader(too good to be true?)

Hey all, I am a very new and bright-eyed hopeful forex trader :)
I am trying to understand why this is not all too good to be true, I have been using a practice account, and it has been going great.
I mainly trade off of the 5min chart after finding a channel in the 10min to 15min charts and a trend/pivot in the 1h.
I will work out a point to wait for a buy, then place the trade, and if it goes in the opposite direction I will "buy" a short position if it drops at least 30-40%.
But not if it is only around 20%, that I can just wait out.
This all just seems too good to be true, looking at these charts and finding a point where there is a support channel and then waiting on a good entry point, I also started splitting up my order into four different chunks to spread my entry point down. I also sell off in the same way.
I have only been buying a single large short position though, mainly because I don't want to click through the setting 8 times :P. Hey its a practice account!
I understand the risk and psychological impact once it is real money. Do most of you trade with the maximum leverage your broker offers? I think with Oanda the most I can do is a leverage of 50.
I watched youtube videos of people using Forex Broker Inc. and that let's them use a leverage of up to 200.
Which is better for the long run? Ideally I want to make around $100-200+ a day to eliminate my current 2nd job. Getting tired of working 60-70+ hours between both. But have student loans to pay off.
How much money would you need to have trading in order to make $200 off of an average pip move? Which seems to be around 30-50 pips.
As a new trader though I would gladly settle for the mindset at first of just getting to the point of consistently being profitable, as long as it wouldn't take up too much of my free time between both jobs now.
submitted by Varkeer to Forex [link] [comments]

Opinions wanted: Choosing Broker after SNB Floor Removal

Hello, I am conflicted about the options for a brokerage account that I am now facing in light of recent events and would enjoy hearing others opinions.
Pertinent Information:
I recently received an email from Finfx stating that they could no longer accept US clients but had secured a deal with a broker in Grenada called "Tallinex". All of my funds, open positions, and accounts are to be moved automatically to a Tallinex server the first of next month.
I have long considered hedging my risk by holding accounts with multiple brokers, and because of recent events I am more inclined than ever to do so. The only issue I am facing is selection of brokers. I have always known that if i were to open a US account it would be with FXCM but I am not sure about how safe that would be now, especially if my goal is to hedge risk; However, as far as US accounts go they are by far the least expensive to trade. So my questions are:
  1. Should I keep my funds with Tallinex? I am conflicted about their reviews and regulatory standards.
  2. Should I open an account with FXCM? They are by far the least expensive broker I know of and are very well regulated and known, but would my funds be safe there if they close down?
  3. Should I open accounts at two different brokers to hedge my risk? Perhaps one in the US as a primary account and one off shore that allows hedging and higher leverage. And if so should those two brokers be FXCM and Tallinex?
I prefer being able to be able to hedge and have access to high leverage, however i would weight the cost of daily trading lower than the risk of having my funds in an account where it would not be safe.
My current Opinion is that I should open an account with FXCM as I do not necessarily need to hedge or use high leverage, however I am unsure of the relative safety of doing that. If it is to risky than perhaps another US broker like OANDA would be good because I can feel safe with my money being there as well as their prices (though they are not stellar).
Thanks for any and all responses! I have lurked this sub for almost a year for entertainment and relaxation, but I hope to be more active in the future.
submitted by SithxJawa to Forex [link] [comments]

Advice on leverage?

Hey Forex, I have been practicing with demo and small live accounts through for the past 2 years through a broker in my home country. Long story short, I\m used to 100:1 leverage. Based on this leverage i decided to open a new live account with €500 and use 2000 sized-lots for a roughly a position size of €25 (5%).
Now, for this account i decided to go with OANDA as their spreads are a bit better than my local broker, also my local broker will soon forbid positions of under 5000. What i found out is that OANDA doesn't offer a leverage higher than 50:1. I want to hear your opinions on the advantages and disatvantages of a lower leverage in MY situation.
I am familiar that i will have lower risk to my money, but i also know that my buying power will be halved and subsequently - my profit.
Should i look for another broker who supports 100:1? Should i stick to 50:1 and why (again i'd like to hear opinions taking into account my account size)?
Thank you guys! I've received so much good advice from this community!
submitted by soso_met to Forex [link] [comments]

Help me to choose a broker -- Oanda, FXCM, forex.com, FXDD

Hi all,
I posted this thread on a Forex forum, I re-post it here hoping to get more advice.
I live in China, and I'm a newbie to Forex trading. I plan to deposit 5,000 USD to experiment Forex trading after I get used to the demo account. After I'm OK with 5K USD, I may invest not less than 10K.
I'm struggling to choose a broker, here are my criteria,
1, Allow hedging. I'm 100% wanting this. Indeed I'm not going to hedge the same amount of money at the same time to earn quick money (which is often used in big news event). What I want to do is, I have a long term position which will be there for several weeks, then I do some short term positions (intraday or several days). That's possible that I have two positions in two directions at the same time.
2, Money safety. During my Googling, I found that some brokers close a trader's account just because he/she earns too much money.
3, 100:1 leverage. 50:1 is not too bad but 100:1 gives me more flexibility.
4, Prefer to NDD (ECN or STP), but DD and MM is acceptable if money safety is guaranteed.
5, Regulates with NFA or FCA.
6, Support depositing using credit card. This is cheapest way for me, at least cheaper than wire transfer.
7, Easy to open an account. I prefer to open an account via internet only so I don't need post a lot of certifications to the broker.
The other points except 1 are tolerant, but I really want point 1 and I think it will be important to me.
Now comes to the brokers I've done some research on. I've checked a little with Oanda, FXCM, forex.com, and FXDD.
Oanda, the most money safety one. 50 leverage. However, it doesn't allow hedging.
All other brokers in my list are not as same money safety as Oanda.
FXCM, the one that's really annoying me is the margin. Why margin for a lot of EURUSD is $750? That's really weird and is not connected to the real price. Can any one explain to me?
Forex.com, as big as FXCM, but in the event that ECB put down the interest to 0.25% at Nov.7 this year, a lot of Chinese traders get network error and lost money. That scared me.
FXDD, not as old as Oanda, and not as big as FXCM and Forex.com, and registered in Malta...
So, what's your advice of a proper broker for me? The one not on my list is OK too.
Thanks
EDIT: another disadvantage of Oanda is that they have 6 candles a week, but it's a trivial problem since I can use other broker's MT4 for technical analysis.
submitted by wqking to Forex [link] [comments]

How to calculate the margin and pip value of CFDs (such as Stock Index), specially, Oanda CFD?

Hi all,
To extend my vision, I start studying CFDs, such as Stock Index, Oil, Commodity, etc. Unlike Forex, I don't understand how margin and pip value is calculated for Stock Index and other CFDs.
I tested with Oanda CFD, seems the margin for 1 unit UK 100 is about $10000, and 1 unit Brent Crude Oil is about $50. Seems the margin for BCO is just the price of the oil, but how about the Stock Index, what's the price?
Thanks
EDIT: the margin I talked above is the total money required, not leveraged. And the leverage provided by Oanda is 50. So the leveraged margin for 1 unit BCO is only $1.
EDIT2: Though on Oanda forum nobody answered my question about what the multipliers are, eventually I realized for fxTrade the multipliers are just 1, but different conttacts are quoted in different currency. FTSE is quoted in GBP, so 1 contract value is 7000 GBP, which is about 10000 USD, which is exactly how I observed. And the pip value is always 1 quote currentcy. For FTSE, the pip value is 1 GBP, which is about 1.5 USD.
submitted by wqking to Forex [link] [comments]

Understanding Forex Leverage, Margin Requirements & Trade ... ✔How to Trade Forex with 50 1 Leverage 50 SMA Forex Strategy - EASY MONEY 💰😎💰 - YouTube Oanda - Changing Funds or Leverage - Forex Trading Tutorials & Strategy

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Understanding Forex Leverage, Margin Requirements & Trade ...

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