Orlando, FL
Experience: Intermediate
Platform: OEC
Broker: VanKar/OEC
Trading: 6E
Posts: 11 since Dec 2011
Thanks Given: 44
Thanks Received: 11
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A plus for the forex argument would be that you can easily apply the compounding principle....
Ex. You trade the EUR/USD with a 10K account and choose to risk 1% max on each trade.
First trade you would be able to risk $100 and max lot size would be 100,000. Lets say
you make 20 pips or a little under $200 dollars counting commissions. Now you have $10,200 and you can trade
a lot size of 102,000, risking $102.
With futures you would need to accumulate quite a bit of profits before increasing your lot size.
This principle applies when you are losing as well. You can easily reduce your trade size as your account goes in the wrong direction.
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