Basic Forex question regarding cost.

NexusFi · 2019-01-01T20:41:44-05:00

I am considering doing some day-trading at forex.com. Which I think is the spot market. I am doing okay in equities, but I just want to take small amount of money and look at other things. So, How do I figure out how much a currency has to move for me to actually make money? That seems like a dumb question. But the bid/offer seems to jump around quite a bit. And it is not clear to me if the commission is coming out of that or is a separate charge. So if trading the Euro, GBP, Yen, and Swiss frank, …

Discussion in Currencies

Updated January 2, 2019

Basic Forex question regarding cost.

January 1st, 2019, 08:41 PM

#11 (permalink)

CookieMonsta

Singapore

Elite Member

Experience: None

Platform: MetaTrader 4

Trading: Spot Forex

Posts: 66 since Dec 2018

Thanks Given: 3

Thanks Received: 58

kazz

Ah, OK, a form of hedging. Here in the UK we do have government protection up to a certain level for registered brokers. This protection would cover most small traders and investors but those with larger accounts would need to spread their capital over more than one broker to protect it.

There is also a useful feature offered by some brokers called guaranteed protection. What this does is protect you in the event you suffer catastrophic losses trading a highly leveraged product. With guaranteed protection the most you will lose is your account balance and you will not be liable for further margin calls. This gives great peace of mind as you cannot owe a broker offering this protection more than your account balance.

Sent using the NexusFi mobile app

Yes something like that, but not limited to that, as in these type of situation, how to manage the position is key to survival.

Example, if a snb situation happens, you implemented a lock through 2 account, say maybe a futures and a spot, spot gets margin called and closed, futures will be riding profits, and it become a passive long break out trade.