# Minimum Cash Requirement for Forex trading with IB



## Seneca60BC (17 October 2008)

Hi All

What is the minimum cash balance/requirement I need in my IB account to begin trading Forex via Interactive Brokers?

Regards!


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## MS+Tradesim (17 October 2008)

$10k USD or equivalent, unless you're under 21 then it's $3k USD.

http://www.interactivebrokers.com/en/accounts/fees/minimumDeposits.php


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## Smurf1976 (17 October 2008)

The question makes me think that you might be contemplating using lots of leverage trading forex? For example, $10,000 in the account and a $1 million position in the market. Please understand that using that example, all you need is a 1% loss in the market to lose ALL of your funds in the account.

Most people lose trading forex according to most sources. Also it's generally said that most use excessive leverage. The two are most certainly linked.


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## CanOz (17 October 2008)

Smurf1976 said:


> The question makes me think that you might be contemplating using lots of leverage trading forex? For example, $10,000 in the account and a $1 million position in the market. Please understand that using that example, all you need is a 1% loss in the market to lose ALL of your funds in the account.
> 
> Most people lose trading forex according to most sources. Also it's generally said that most use excessive leverage. The two are most certainly linked.





With IB the minimum lot size is 30000 so if you are traing these with a 10000 account then you are 3:1....depending on the currency of course.

Cheers,


CanOz


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## Seneca60BC (17 October 2008)

Hi

No i do not want to use that much leverage.  All I wanted to know is how much in my account i need - so when I fund my account with US10k - then i can begin trading Forex?

E.g

30,000 * .025 * .69 ( AUD/USD) = $517 approx.

this is the margin.

The leverage here is 40:1.

Correct?


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## CanOz (18 October 2008)

Seneca60BC said:


> Hi
> 
> No i do not want to use that much leverage.  All I wanted to know is how much in my account i need - so when I fund my account with US10k - then i can begin trading Forex?
> 
> ...




At the end of the day you are leveraging your account balance 3:1. That's the way you need to look at it in my opinion. Margin is margin, who cares...

The truth is you are leveraging your capital by three times...depending on the currency.

CanOz


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