I was wondering if you have some plans to offer trading?
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I was wondering if you have some plans to offer trading?
Hi yankees67,Originally Posted by ;
Yes we do intend to have cellular trading later on, as there is ongoing requirement for it. Once cellular trading is adopted by us though we will inform all of Demo customers and our Real with regards to if, we do not have a quote as of yet and I shall make a note to informforexforum.co.zamembers also.
Kind Regards,
The TradingPoint Team
Thank you for your explanation about your Fractional Pip Pricing. I've been demo trading using Trading-Point this week and it looks great up to now.
In addition to opening this thread to allow forexforum.co.za members to share their Forex trading experience and also ask us questions we wish to supply some insight with respect to some of the questions amongst the forexforum.co.za community. We will initially start with the question -- Does a greater leveraged account always equal greater Risk?
In brief, leverage is a tool which allows a trader to enhance the amount he wishes to buy/sell of a financial instrument. It's used by the majority of traders with the aim of raising the value of their pips gained which leaves them exposed to a.
There is a common belief amongst some traders that a greater leverage consistently indies greater risk and as such discredit brokers which provide for such high leverages. Yes it's correct that when you use a leverage to open the highest amount, that you may be stopped out experienced traders that know how to use leverage don't do this in such a fashion. They choose to open an account with greater leverage in order to reduce their margin requirement and hence possess a 'cushion' if their transaction go against them.
To illue this vividly consider two traders; Trader A and Trader B. Both Traders begin with $1000 and are stopped out when their equity amount falls to 50% of their Margin. Trader A chooses a account using 1:50 leverage and Trader B one with 1:500 leverage.
If both Traders open a place for 0.25 lots (25,000) on EURUSD (where each pip will be worth $2.5) (let's suppose that the rate to be at 1.4200), then each trader will possess the next Margins (Lot size*Price/Leverage):
Trader A:
Margin= (25,000*1.4200)/50 = 710
Trader A will be stopped out at 50% of their Margin, hence he will be stopped out if and when his equity falls from $1000 and reaches 355 ($710*50%) i.e. when he loses a few 258 pips: (1,000-355)/2.5
Trader B:
Margin= (25,000*1.4200)/500 = 71
Trader B will be stopped out at 50% of the Margin, hence he will be stopped out if and when his equity falls from $1000 and reaches $35.50 ($71*50%) i.e. when he loses a few 385.8 pips: (1,000-35.50)/2.5
From the above example it can be clearly seen that the Trader together with the account which gives him 1:500 leverage includes a greater 'cushion' with respect to the amount he can lose and still keep his place open. As such it's in fact less risky to have a greater leverage provided it's used in the ideal way, which isn't to open the maximum potential position but rather to use it in order to have a lower margin and have a larger gap by which you may drop before quitting out?
This scenario is nevertheless not as common as the alternate, which will be to exchange the maximum amount one can with the leverage and as such it's very common that many traders get stopped out rather easily.
In summary, greater leverage can be quite risky if used in the wrong way but can provide a larger 'cushion' when used in a fashion as described in the example above.
Kind Regards,
The TradingPoint Team
I totally agree with your statement about the benefits of having higher leverage. I can't understand why anyone would want to have an account with leverage. Just because the leverage is available, doesn't mean you've got to always be leveraged to the max, but it's a fantastic cushion.
For me personally, I look at it as a means to decrease the quantity of funds I have at risk with the broker. Let's say I have $10,000 USD I wish to use for trading Forex and want to risk 2% ($200) on every trade with an account which provides 50:1 leverage.
Or I will use an account using 100:1 leverage (or higher) and efficiently create the same trade using a $5,000 USD account and still risking $200 per transaction. It's a 4 percent risk of my available balance, but it's using the equivalent accessible margin of this account. But in this situation, my other $5,000 is currently sitting in my bank account and not at risk of any market or broker shenanigans. (No offense Trading-Point...) Which is also why simple and low cost withdrawals and deposits to the account are also very significant.
Which brings up a query for Trading-Point:
What's the greatest available leverage for a typical account? Is 500:1 accessible for a account?
Thank you for taking the time to answer our queries.
Hi Dozer,
Thank you for your comments and positive feedback - You are extremely correct in saying that just because you've got a greater leverage does not mean you should necessarily use it to the complete extent.
With regards to your query on that accounts we offer the 1:500 leverage:
? 1. For our Micro accounts, which permit you to open a maximum position of around 100 Micro lots (like 1 Standard lot = 100,000) per transaction, you might select a leverage between 1:1 - 1:500
?
2. For our Standard and Executive accounts, which allow you to open a maximum position of around 50 Standard lots (5,000,000) per transaction, you might choose a leverage from 1:1 up to 1:200 and 1:100 respectively.
Please be aware that the maximum leverages for Standard and Executive accounts are as such by default; if a client wish for a greater leverage in these 2 accounts we're more than prepared to go over this and accommodate as a bespoke solution. Factors that will be considered in this decision include the quantity his start up capital and the client wants to trade.
So to answer your question directly, yes it may be possible to obtain a 1:500 for a typical account however, as a default option, the maximum we supply for is 1:200.
I hope the above clarifies your query.
Kind Regards,
The TradingPoint Team
That is good info. Thanks for the explanation.
[quoteDozer;4526300]I too am a USA customer in search of a decent STP/ECN overseas broker. TradingPoint seems like an option. If you do nicely, I think picking up USA clients could be fantastic business opportunity for you.
I have downloaded your Demo MT4 and noticed that the trading digit precision seemed to differ from currency to currency.
From your site:
Yet it seems this is not consistent. Most 5 Digit brokers have 5 digit precision for all pairs (except for its Yen pairs that are 3 Digit precision and the exotics which could change). Your currencies seem to be a mixture of 2,3,4,5 Digit precision.
While this is not necessarily a problem, it does become a pain when working with several pairs, EA's, basket trading, etc.. .
One thing to take note of if you're considering TradingPoint as a broker.
Can there be a reason for this variant in precision?
Thank you for participating here inforexforum.co.zaand also for answering our questions.
have same attention and think of many options
divisa in nz (regulated)
investorseurope in gibraltar (regulated)
dukascopy (swiss broker and bank)
finfx in finland (registed just cos regulation of FX brokerage is nonexistant there)
look in them and post your view
blessed trading to you
Re: alstural
Thanks for the suggestions.
I was contemplating dukascopy, but they do not have MT4 and in addition, they lower their accessible leverage over the weekend to 30:1 which would not work for me since I make the most of greater accessible leverage and frequently hold positions for many months or maybe months.
I am thinking about opening up a typical trading account with Trading-Point shortly, but I will also look into another brokers you mentioned as I feel it's better to not put all of your money in the hands of just 1 broker.
For what it's worth... I have opened a Micro account with Trading-Point for analyzing and to test my trading systems with their accounts. I have been quite impressed (and profitable...) so far. Opening the account was quite simple and my initial deposit(bank wire) was imputed accurately within one day. Trade executions are quick and excellent. Since I haven't had any issues so far I have tested their customer service. Everything has gone well and as anticipated. I haven't made any withdrawals however.
If my testing together with the Micro account proceeds easily, I plan on opening up a considerably larger Standard account within the next few weeks. Trading-Point is on top of my broker list.
caution!
Soviet block
looked in it and refused
prior to making conclusions withdraw profit several occasions especially large ones
micro mini accounts are simply to lure
try to check divisa
it looks severe
be thankfull for your comments
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