fortyfour
189 posts
msg #102743
- Ignore fortyfour
modified |
9/27/2011 8:47:57 PM
I have had positions in UUP(long USD vs. small basket of others) and EUO( double short euro etf). I intend to hold them
for a while , or, at least until QE3. But, I would prefer not to tie up money in such low day range/volatility instruments.
I have a margin account with IB and understand that they offer leverage 40:1 for Forex trading.
Although having never done a forex trade I am comfortable with proper position sizing and dollars per pip::: the leverage/risk issues.
What I dont fully understand are the mechanics of this trade.
I want to sell EURUSD. ( take a short euro position vs. USD)
The transaction currency is EUR...the settling currency is USD
I do not presently have euros to sell in my account.
I do not want to exchange dollars in my account for euros prior to making this trade( this I guess is one way to do this)
I want to use for example: $2500 USD for margin for a 100k EURUSD position (40:1) and a loan for the rest from IB(in euros?)
I want to be able to close/cover this position instantly if I wish with a stop etc... .
I am worried about trying to do this and getting some "WARNING" or "DENIED" due to something I dont
understand regarding the currency conversions.
IDEAL ( who handles IB's forex trade) has a min 25k for "a good fill" and I will try the smallest amount 1st and day trade
it for practice but.... any comments from a forex trader using IB (although probably nothing unique of IB) would be appreciated.
Thanks.
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TheRumpledOne
6,407 posts
msg #102747
- Ignore TheRumpledOne |
9/28/2011 9:35:05 AM
Nothing to worry about.
Get a demo account and practice until you understand.
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lvainik
52 posts
msg #102748
- Ignore lvainik
modified |
9/28/2011 11:00:49 AM
I would demo at IBFX, Their platform is ultra simple and solid and you demo their software free.
I know a few people who trade for their livelihood using this system.
The shorting; selling first , closing or buying back later etc. is crystal clear.
When you can turn your demo account from $25,000 to $50,000 twice, you're ready for the big show...
My2c
TWEETss.com
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mahkoh
1,065 posts
msg #102755
- Ignore mahkoh |
9/28/2011 5:23:38 PM
I have an account with IB but prefer MB Trading for forex. They are an ECN broker as well and you can trade smaller lots with them. You can choose between their own platform or MT4, demoaccount is free.
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fortyfour
189 posts
msg #102761
- Ignore fortyfour
modified |
9/28/2011 7:50:46 PM
Thanks to all.....
I will set up a demo account.
Ivainik, "TWEETss.com" ....nice source for info...thanks.
But, I must add that I really dont expect to double my money... that isnt my objective( or skill level for that matter)
The "off" hours of Forex really appeal to me. I sat from 2AM-5AM EST. watching EUR.USD and USD.CAD
Massive liquidity and "paint drying" movements (I understand that you pick your poison: leverage)...
I look forward to it ...Thanks.
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