Forex Margins - looking for less risk

[wazza1987]

Hi everyone,

I'm a civil engineering student who graduates this year so I've been researching forex trading (and shares) in the hope that I have a decent income in the next few years.
It seems that the brokers I've looked at only offer 1% or 2% margins. I was hoping that when I finally decide to trade that I could trade at 10-20% so that the risk (and profit/losses) is lower.
Is this possible through margins or is there another method that may suit this type of trading.

Thanks for any help

wazza

 

[Trembling Hand]

Mate!!!!!!! It doesn't matter how much the broker takes for margin. You just position size your holdings to appropriate levels. Look up position sizing and if you're half smart you soon see margin has nothing to do with risk unless you're a cowboy.

 

[wazza1987]

thanks for the response.

so say if I had $10,000 capital, I might only buy a few hundred dollars worth of foreign currency at 1% to keep my leverage low?
Are trades of this value common?


cheers

 

[wazza1987]

Ok,

I actually found some useful links which make my last statement look silly.

thanks for the help

 

[cogs]

Try this post

https://www.aussiestockforums.com/forums/showthread.php?t=19564

 

[tayser]

thanks for the response.

so say if I had $10,000 capital, I might only buy a few hundred dollars worth of foreign currency at 1% to keep my leverage low?
Are trades of this value common?


cheers

$10,000 in a currenex account, trade on no margin, it'll give you $1 pips. *Shrug*

 

[oktar]

There is an opinion that using leverage is bad thing, eg babpips are teaching newcomers that leverage is evil. However I'm saying that it is your friend. If leverage wouldn't exist (1:1 leverage) then most of retail traders wouldn't get good profits (even when making a 100 pips / d). So use leverage as big as you can, or just 1:100. It doesn't matter. Just fit your Money Management accordingly and thats it.