Question about 1% rule and margins - Traders Hideout | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout

Question about 1% rule and margins
Started:January 29th, 2014 (07:20 PM) by jamiecassar Views / Replies:241 / 2
Last Reply:January 29th, 2014 (10:12 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Question about 1% rule and margins

Old January 29th, 2014, 07:20 PM   #1 (permalink)
Elite Member
Rochester MN
Futures Experience: Beginner
Platform: Oanda
Favorite Futures: Micro-FX
Posts: 82 since Jan 2014
Thanks: 178 given, 21 received

Question about 1% rule and margins

When I place a spot forex trade for 100 shares, it says margin used $5.00. This is 1% of my $500 practice trade account.

My question is should the 1% rule be applied to my margin, or should it be applied to the $500 in the account?

"Judge yourself not by the outcome, but by your process."
Reply With Quote

Old January 29th, 2014, 07:20 PM   #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.


Old January 29th, 2014, 10:12 PM   #3 (permalink)
Trading Apprentice
Melbourne, Australia
Futures Experience: Intermediate
Platform: NinjaTrader, TOS
Favorite Futures: Futures
Posts: 5 since Oct 2012
Thanks: 3 given, 2 received

The 1% rule relates to the amount that you risk on each trade, not your margin..

The distance between your stop and your entry defines the $ risk, and combined with your account size and risk % you can determine how many contracts to trade.

Reply With Quote
The following user says Thank You to switchmullet for this post:

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > Question about 1% rule and margins

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Futures Broker: Margins bustainc Brokers and Data Feeds 19 December 22nd, 2012 07:12 PM
BIGPOINTVALUE IDEA ALSO AVAILABLE FOR MARGINS? Wouter Elite EasyLanguage Automated Trading 5 August 25th, 2012 02:25 PM
Overnight margins baruchs Index Futures Trading 13 September 10th, 2011 03:56 PM
Gold margins set to increase again? Big Mike Commodities Futures Trading 5 August 26th, 2011 05:11 AM
Crude margins are going up kbit News and Current Events 1 May 9th, 2011 11:30 PM

All times are GMT -4. The time now is 09:58 PM.

Copyright © 2016 by All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-23 in 0.08 seconds with 20 queries on phoenix via your IP