asuming i have these amounts in my live micro forex trading account:
BALANCE = $ 5,000 EQUITY = $5,000 DAY P/L = $240 USD MR.$400.
which of the amounts above in the columns can i withdraw if i deposited $25 to start with?
Best regards Benoni:confused:
You can witdraw your whole account, if you want, if you arenāt in any trades.
Balance = what your account is worth
Equity = what you account is worth currently, minus or plus the current trade that is open.
So, if you arenāt in any trades. Balance is what you can withdraw.
Profit/loss, is just what you have lost or made thus far with past trades.
Dear Phoenix, Thanks so much for your quick response and explanation. Does it mean I can withdraw the balance of $5,000 even though the mycro deposit that i made was just $25?. Would it not be cheating fxcm after they have allowed me to trade with $5,000 or you mean If i made a profit of say $250 and the $5,000 increases to $5,250 then i can withdraw the $250 excess.
Best regards Benoni:D
You can withdraw whatever, ābalance,ā says when you are flat and not in any trades. If you started with $25 and the account balance is now 5k, yes you can withdraw it. It isnāt cheating them itās your money, your account.
But, your wording makes me think there is something we are not communicating to one another. Your wording makes it sound like fxcm GAVE you 5K to start with on top of a $25 dollar deposit.
But, since no broker would do that, Iām assuming you mean if an account was started with $25 and was build to 5K. In which case, fxcm didnāt allow you to trade with 5K, you traded an account to a size of 5K. Itās your account do with it what you will.
You arenāt cheating the broker.
Again, āprofit/ loss,ā just means the amount of profit or loss that occured since the last time MT4 made an overall account of your account.
For instance if you started with $25 on monday and by friday the account was traded up to $100 it would say, āprofit/loss= $75ā
As long as you were flat you could withdraw $100 dollars from the account.
P.S. If you did trade an account from $25 -5K (live not demo) and it wasnāt over a long period of time and just the result of overleveraging and lots of luck, they my advice would be to at least take out 1K before you blow the account.
Hi Phoenix, Thanks again so much for your help. You are right there is something i did not communicate well because I am new. My account is a demo I discovered on the net just as I discovered banypips about a day or two on the net. I signed up for the $25 demo account and the balance was $5,000. As iam writing now I have made a profit of $267 today. Your explanation makes me to think I will not be given $5,000 to trade with since I am planing to signup live this week with $25 mycrolot.(fxcm. This means I will be given a balance of $25 and not $5,000 Hope I am right?
Best regards Benoni:D
Yes, that is correct. You only start with what you put in. The broker will not give you a loan to fatten up your account balance. If you grow it from your own money, what ever it grows to is yours.
Brokers try to start you with large amounts of money on a demo, so when you win (which is far easier in demo) you will get all excited about the big fake money you made and start an account with some real money.
P.S. Some broker will give you some money, but no way are you getting 5K for $25. Usually, it a put in x amount and will match it by x amount. And there usually is stipulations on that, like have to trade x amount of trades within a month. Best to trade off your own money anyways. That way you have the ultimated say over it and arenāt compelled to trade a certain way.
P.P.S. Donāt overleverage that $25 trying to compete with what you did with 5K, othewise that account will be gone in a blink. Size down appropriatly. I wouldnt trade any larger than 5 cents per pip lot size on $25. That would give you at least 500 pips before its gone. The first account is usually blown anyways. Try to keep it afloat as long as you can so you can at least learn some things live.
Hello Phoenix, Many thanks for your explanation I now have understood the picture and seems I now know what to do. You are great.
Best regards Benoni:D