Can’t seem to find an answer for this.
I understand it isn’t recommended to enter and exit trades with your entire account balance, but is it allowed?
Example: Buying and selling max allowable units 10 x a day.
Any ‘technical’ issues with this?
How does it relate to settlement?
Hi, I don’t think this is possible, you are limited by margin requirements, depending on what leverage you use? Why would you want to enter with max balance anyway?
Let’s assume a unit is worth $1 and with $1,000 account and 50:1 leverage. No need to get complicated with spread.
I buy 50k units, price goes up 10 pips, and I close the position for $50 profit.
I sell 50k units, price goes down 10 pips, and I close position for $50 profit.
In a perfect scenario, can I do this over and over during the day?
Yes, but I think what Greoski said is correct? IF it goes against you, there will be a margin call and they
will liquidate some/all of the position?
I do appreciate the input.
Yep, I understand the margin calls. I am just confused about the settlement process and if that impedes your ability to keep trading.
To get away from the margin call issue, if I trade 25% of my account, but go in and out 100 times in a day will I run into issues trading funds that haven’t settled yet?
First of all you will not be able to open position with 50000 units having $1000 balance and 50:1 leverage, easy to check, go on Oanda and imput 50000 units and it will say insufficient funds. Second Oanda platform will display max units you can open position with in small box saying ‘Available units’
If you go in and out 100 times in a day with 25% of your balance that won’t be enough time for market to make a move in your favour plus spread would more than likely take a lot from you. Anyway, have you ever traded on demo account ? Looks like you need to do some experimenting, that’s what demo accouts are for.
Good Luck
You will lose all of your capital if you carry on risking your entire account balance. It’s a slam dunk certainty.
I appreciate the advice from you all, but I’m not looking for money management advice.
Just a technical question on if OANDA allows it.
If we will learn how to manage and bring down the risks from our trading t hen we can certainly get more profits.
That would depend on how you manage emotion, which is a major stumbling block for any trader to conquer. It’s human nature to find it easier to cut a losing trade than to let a winning trade run.
There are techniques that can help, though…
I don’t own OANDA account, but surely you can try that out in demo, I believe?
I have no clue whether Oanda allows this but you can always demo trade it and see for yourself. Or else, there’s a support team who’ll help you with any query.