• Australian (ASX) Stock Market Forum

Can I trade forex without leverage/margin?

Discussion in 'Forex' started by Slyme92, Apr 8, 2016.

  1. Slyme92

    Slyme92 New Member

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    I'm very sceptical about trading especially when 'costs may exceed the deposit in your account' and wanted to know if I can use my own money to trade positions in fx Markets without having gearing applied onto my account. Cheers in advance if anyone can clarify this for me,

    Matt
     
  2. CanOz

    CanOz Every day above ground is a stellar day!

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    You can, by trading at or below your account balance is effectively trading without margin. For example, if you have 100k in your account, and you take positions of size less than or equal to that account size, then effectively you are trading with margin. Otherwise, the only way to do this is to open an HSBC currency account and buy and sell the currencies directly.
     
  3. myfxpt

    myfxpt MYFXPT

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    If you want to be safe, check your brokers' Negative Balance Policy to ensure your liability does not exceed your account balance.
     
  4. ryan11

    ryan11 Member

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    There is no such compulsion to get the Leverage for trading . You can also trade without Leverage. But it requires a lot of funds which can't be managed by everyone. This is the reason people prefer to trade with high leverage as leverage allows them to trade huge with small investment.But in case of no leverage also, you are required to maintain a margin(could be some % of equity) for trade.
     
  5. mjim

    mjim Well-Known Member

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    Yes you can for sure ( irrespective of what FX you are referring ie. FX OTC or FX futures)
    If a contract is $10000. and if you have 10K in account "clear" and no other positions then you are not using margin
    so Negative balance can't come in to picture also.
    If currency pair goes down to Zero! you loose 10K! max ( if that happens you have other things to worry)
    Same as buying shares with your own money without a margin loan.

    Another way to trade FX without fear of margin call is "Buy to Open" Call or Put Option ( Fx futures has option traded on exchanges) but that is another can of worms! or buy Option spreads etc
     
  6. cynic

    cynic Well-Known Member

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    When a forex position is opened, it involves the sale of units in one currency and the purchase of units in another.

    So in effect the forex trade actually creates two positions, a long position in one currency with a corresponding short position in the other. One position wiĺl be a set number of units, and the exchange rate offered, at the time the position was opened, will determine the number of units (or part/s thereof) for the other.

    In order for the position to be truly unleveraged, the trader would need to hold the currency cash equivalent of the short position in their account.
     
  7. Ina amran

    Ina amran Member

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    I just found a Forex Broker that is giving me Forex instruments to trade with 5 decimals.

    I haven't seen any broker with 5 decimals yet..
    This should be interesting..
    Anyone seen this before??
     
  8. Ina amran

    Ina amran Member

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    Anyone know of any EA strategies that i can buy and use for trading Forex instruments with 5 decimals???
     
  9. cynic

    cynic Well-Known Member

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    I know that FXCM does, but, based upon my experiences of them over the past two years I am somewhat reluctant to recommend them.
     
  10. Wysiwyg

    Wysiwyg Everyone wants money

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    5 decimal place FX quotes have been around since pre 2010.
     
  11. Wysiwyg

    Wysiwyg Everyone wants money

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    Think about it. Would anyone in this game sell a strategy that worked? Been there, done that. It's B.S.
     
  12. Ina amran

    Ina amran Member

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    Somehow lately i am coming across a lot negative reports based on experiences about FXCM, would you recommend to go forward with a broker other than FXCM using 5 decimals instead of 4.
    I am liking this other broker (seems relatively unheard of) their offers and services till now but haven't started serious trading with them yet.
     
  13. Ina amran

    Ina amran Member

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    yes kind of True.

    But i am in touch with a trader i found on a traders group who uses multiple EA's at the same time and looking at his account he has been making consistent profits with them.
    I am inclined towards using them myself but not sure yet.
     
  14. cynic

    cynic Well-Known Member

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    If a forex broker is "relatively unheard of" then I would exercise extreme caution. They could be white labelling for another broker, or perhaps have reinvented themselves to dispel an unsavoury reputation under a former trading name/brand.

    On the other hand the broker could be just new to the business and prove to be worthwhile in time, but how does one determine this before the broker has been in the game long enough to establish credentials?

    Would you care to disclose the name of the broker you are considering?
     
  15. cynic

    cynic Well-Known Member

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    Just how well do you know that particular trader?
     
  16. ryan11

    ryan11 Member

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    I think 5 decimal spread is better. More are the decimal, Better will be the price efficiency. Price fluctuation represents the actual market condition. Brokers who provide 4 digits are mostly price makers. And I have heard about FxPro, FinPro Trading for 5 decimal spread. They do provide EA's.
     
  17. cynic

    cynic Well-Known Member

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    Have you been using those two brokers, and if so have you been able to withdraw any of your money from those accounts?
     
  18. Ina amran

    Ina amran Member

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    I don't really 'KNOW' the trader as such, i have been in touch with him on other forum discussion groups like this one.
    He seems like a veteran trader.
     
  19. Ina amran

    Ina amran Member

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    Have you used Finpro trading for broker services?
    Are they safe in terms of your deposit with them?
    They seemed new to me but i am liking the offers they are giving me.
     
  20. Ina amran

    Ina amran Member

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    I am using a Demo account with this broker Finpro trading and considering to open a real account with them, i am really liking the offers and services they are willing to give me upon conversion to a real account.
    But they are relatively new(2012) compared to other popular brokers like FXCM and others.
    Hence the apprehension or rather delay.
     
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