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Author: [Investments] Topic: If i put $2,000 in a Forex account, can I...
STEELERS in 07 send a private message View Space | Friends | Playbook |
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#1
Posted: 5/27/2012 12:36:55 PM
open a position of -100,000 short on EUR/USD ? Or do I have to open up a -10,000 position?
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#2
Posted: 5/27/2012 3:45:06 PM
Which broker?
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#3
Posted: 5/27/2012 3:47:07 PM
Forex.com
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#4
Posted: 5/27/2012 4:13:33 PM
All of them have min equity requirements for positions, for each lot that X dollars is required.

I would keep enough in reserve to be able to buy up several times if it goes against you..

Buying all you can on one position and point is a recipe for disaster.
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#5
Posted: 5/27/2012 6:08:37 PM
I don't understand. So if I deposit $2,000 what happens then? Can I only open 1 10,000 position or 2, or 5, or 1 100,000? Seeing that I am only going to short the EUR/USD and don't have any interest in any of the other pairs, I just want to know how much capital I need to have in my account to short -100,000? Can you give me an example of other brokers you have used to take up a position of that size? Even if it's not Forex.com just so I can have an idea of what you mean.
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#6
Posted: 5/27/2012 7:22:01 PM
What I mean is I think some brokers have different requirements to short a full lot. Forex.com has two main tiers of requirements, most of the main pairs are a 2% requirement, which the EU is in that group. There are others that are a 5% requirement, some lesser known pairs and there are a few which are even higher.

So on a 100k Eu/US short you need to have 2000 to short a lot (100k * .02)


The point is that every lot you short or buy, every pip that goes against you hits your equity up or down..so if you have one lot then you are up or down 10 bucks each pip. 

If you have two full lots then each pip up or down is 20.

So think about it, if you have 2 lots and each pip is 20, that means you will be blown out at a loss of 100 pips, which can happen EASILY and it does happen.

I would suggest if you want to start with 2000 that you go with a mini lot and grow your account upwards then when you have more you can move to a full lot account.
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#7
Posted: 5/28/2012 11:46:18 AM
Gotcha! Thanks for explaining
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