View Single Post
  #1 (permalink)  
Old 11-25-2006, 01:53 PM
shwetha's Avatar
shwetha shwetha is offline
Member
 
Join Date: Feb 2006
Posts: 52
shwetha is on a distinguished road
flexible leverage vs fixed leverage

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
__________________
your attitude determines your altitude.......

Last edited by shwetha; 11-25-2006 at 04:47 PM.
Reply With Quote