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Unsustainable Appetite in FX, Equities & Oil
We're witnessing more signs of peaking appetite, this time inside the individual Forex pairs, as well as more failure in oil and Chinese stocks
Hello Fdasalguero ,
Thanks for your advices and for your time .
But , in fact , was a little exprimation error ( but in my mind everything is clear...i think :) ...1-real leverage ( total value of transaction/total trading capital ) is what you say , correctly ,2- 100/1 is " the margin based leverage " or margin required of total transaction value for a specific position , yes , and i agree too with the last your point .
And when i told 2-3-5 percente from my account i want to said if i should have a 10000$ account i should open a position with 2-3-500$ maxxxxim 1000-2000$ ( cumulative in few positions and that depends by many factors ) ...i recognise sometimes push up too hard , but 95% i really do lake i said.
Regards
Radu
Ashraf
What impact do you think tomorrows Bernanke announcement will have on the markets? Could we see another short jump in risk appetite?
Your opinion is very appreciated
Paco, thanks
Ashraf
- Leverage is how many times you are multipling your own money. For example, if you have a $10000 account and you buy a mini lot in EURUSD (10000$), then your leverage is 1:1, if you buy 20000 then your leverage is 2:1 and so on.
- Margin is the money the broker ask your for an especific position. If your broker give you a 1% margin account or 100:1 then it will ask you to have at least 1% of the overall money you have invested, if you have invested 100000$ (1 lot in eurusd for example), then your broker will ask you 1000$ and you will receive a margin call when your margin reaches that amount.
- Money at risk is the amount of money in % of your account, for example if you have an 10000$ and your unrealized losses (open positions) is 3000$ then you are risking 30% of your account.
Asad, I don`t agree in one sense with your strategy. I like that you diversify in different prices your risk so you have more oportunities to close a position with profits but if you have a bearish strategy for example in oil it makes more sense to open the bigger position at 73 and the smaller one at 69 reducing the posibilities of incurring in bigger losses in case of a retracement.
Ashraf, I read your book and I think is a really good work. Congratulations!!. The website is also cool but I don't like when people start to argue for silly things, I guess we are here to make money in this complex market, not to make people waste their time reading other things different to how to be more profitable
Regards,
Paco
perhaps; a mssive sell off in crudeoil?
Ashraf
Maybe there is a conspiracy to annihilate Canadian manufacturers at least the citizens will benefit with lower priced goods etc !!!!!
weak UK fundamentals outweighed risk taking in the stock markets and the pound suffered today.
As i said, UK fundamentals are shocking and pound is certainly overvalued on an economic point of view. I do expect the pound to be below 1.55 sometime this year.
the fact that crude oil forecasts are starting to head lower for this year should add further support for a falling pound vs dollar even if stocks dont fall sharply and heavily.