Just hypothetically, say there was a billionaire that wanted to trade his fortune with Forex. What is max number of standard lots one such as this billionaire can trade with?
Thanks,
Khan
Ummm in theory there is no limit . If you had the money you could just send $1000000000 to a bank leave it there … Bring in back to your own bank .
Your bank would just charge you the normal over sea transaction fees
Or if you have a broker that not a market maker . They will just place it in the market place …
But like every thing - supply and demand
You just need some one trade you
Forex is like $90 trillion per day
That why there no inside trading . No single person can move the market - it’s too big .
You would need a huge country to dump it whole currency
Say one traded with a billion, would he be able to obtain 1:50 leverage as well? meaning 50 billion?
There’s no “maximum” amount you can buy or sell. If you have the money or credit, you can buy or sell as much as you have.
In 2002, George Soros put up US $10.5 billion to short the British Pound. He made about US $1.5 billion on that trade.
As much as he wants. There are really no limits. Yeah will get the leverage, only that it will be shared among two or three liquidity providers.
How much money do have? Lol just teasing. No, there are no limit in FX trading. Rather than you should concentrate and become profitable in this jungle.
Aftermath, growth your account and monthly income to 4,5, and even 7 figures every month.
Regards,
NVGU
who needs 50:1 leverage when you have billions in your account? 5:1 maybe.
i think some broker may have limits tho
just notice my broker limits Islamic account to 60 lots
There’s no limit on how many lots you can trade; but why 50:1?
Thanks for all the replies everybody. And Fxmall, was just wondering if banks are willing to throw in 49 billion let alone more for higher leverages.
I think it does not matter how much money you have. Lot size depends on strategy and risk tolerance.
Reading about Soros, I guess its possible but trading with such large amounts clearly has adverse affects on a country if the trader makes profits. correct?
No, in case of BOE, It just was not sorros but a series of mistakes carried out by them…which sorros later capitalized on.
Just remember, this market has a daily turnover running into trillions of dollars so it is going take something more than just a trader to impact a country
Thats true, but once your playing with a billion leverged to 50 billion, thats 1/80th of all of forex volume in one day with all currencies. Say one was trading with 500,000 standard lots (1billion?) and he made 20 pips one day, thats like 100 million. Doing such a thing really will not affect a country or anyone?
Well, most of the big account marks usually head over to hedge funds and as to the query of a billion leveraged to 1:50, can it affect the market with a large order, maybe but as to whether it can affect a country, not so much, given the huge amounts that is required to manipulate the market. Check out IMF’s review on currency manipulation and most countries tend to free float their currency but with riders, including the US to avoid their currency being attacked in similar method.
For example, some of the countries use their foreign exchange reserves to build up their currency in order to stem the attacks so a prolonged attack on a single currency can literally empty the foreign exchange reserves, which as you can see will lead to a crisis.e.g Thailand, 1997-98