Only 500 Lot a position?

Trading Systems
1

Hello traders !( especially to the more experienced traders, maybe they know the answer)
I checked out that my broker allows only positions max.500 Lot, for all instruments, this is approx. 15000 USD trading SP500Cash CFD, So what options has someone, who wants to trade the same way as on the typical Forex Broker MT4 platforms, but with really big money? So if someone wants to trade 50000 USD positions or more, what can he do or where should he go? ( I mean first of all trading only Indices CFD like on MT4)

2

500 lot is way too much! 1 lot is worth $10. Even if you trade 10 lots each pip will be worth $100.

3

Thanks, maybe there’s missunderstanding concerning the Lot size, cause with my broker I earn 1 USD / pip change if my position is one lot and that costs me 29 USD margin, leverage 1:100 fixed

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So if I trade 10 lots each pip is only 10 USD…

So with 500 Lot one pip is 500 USD, and that costs me with my broker 500 multiplied 29USD makes 14500 USD the position.

OK, that’s a lot of money, but what should someone do if he has money for 50000 USD positions?

4

What are you saying man?! One pip is $500!! What is the problem? You think you’re going to trade that much?! So 10 pips is $5000. Come on bro. What are you complaining about?

5

just s hypothetical question- I mean what should someone really do if he wants to invest more money in a position?

6

Ah ok lol. You can either approach your broker and they may have an account for high net worth professionals. Or you move to another broker. Or if it is max per position, you can take multiple positions maybe. There are options out there if you get there. Some brokers might give you an account manager who you call so they can put on the large size for you.

7

It’s a total value of $1.5 million.
I think that not just the broker puts the limit for itself, but also regulatory bodies put these kind of rules for them, to avoid that a retail customer drops a bomb of $1.5 million on the market… with leverage also.

8

I see, so it’s worth trying to talk to the broker if it’s possible to arrange a special agreement

9

Yeah try it.

10

If you want to trade really big money. Open a futures account and start trading markets like the 30 year TBond, Silver, Nat Gas, Palladium, Feeder and Live Cattle or Lean hogs.

Cheers

Blackduck

11

Thanks, so the " higher class,’ (from the financial point of view) in trading would be a futures account

12

Either that or trading penny stocks. Check out trading sites like Investors underground. Their is big bucks in trading penny stocks but there is also big risk and you need at least a $25,000 account as a minimum to day trade penny stocks.

Cheers

Blackduck

13

But wouldn’t penny stocks be too illiquid for big money? There’s a reason why Tim Sykes is selling courses–he can’t scale his operation. Also, it is the reason why he and his students cash out regularly and restart with small accounts.

I would say stick to fx or futures–40 million dollars, that’s what EURUSD can absorb during liquid hours without running into liquidity issues. Open several broker accounts and you can really have some fun–one could use copy trading software to sync the trades.

I discovered all this when I asked myself if any of my strategies could be scaled…

I do wonder though, why open a trade with a full 500 lot position. Large players scale in. They also do synthetic trades to hide their intentions. There are other tricks but I don’t want to get into it.

1 Like
14

No I don’t think so. I have watched videos of Nathan Michaud who by the way is an Aussie, from Investors Underground trade and he scales in and out of trades and at times makes big money.

But it can be a hairy ride as prices can move very quickly. Al Brooks trades the Emini on the futures market on a 5 min chart and scales in and out as well. The Emini can also be very liquid and can move 30 40 tics inside of 5 minutes.

I trade a 5 min chart but trade slower markets like the currencies wheat bean oil etc and I don’t scale in I scale out. I take a trade with 2 or 3 contracts or lots on the Forex market and then take off contracts as the trade moves in my favour. I find that to be far move comfortable and less stressful for me.

But each to their own.

Cheers

Blackduck

15

Oh that guy–same guy who was interviewed on Chat with Traders.

It would be interesting to see what he’s doing. I did trade penny stocks before, I guess built positions wrong because I moved the darn stock.

Hey, London is open, happy trading! I’m winding down over here…

16

Yes break even on my first trade. Nothing of interest at the moment.

Enjoy your night.

:wine_glass: :wine_glass: :+1:

Cheers

Blackduck

1 Like
17

The reason for my asking is a very simple strategy wich requirers two different accounts (one long, one short)which fell into my eye incidentally and which I tested on Forex account I just asked myself that it should also work with huge positions- but I am not sure if future broker allow simultaneously contrary positions on two different accounts with them. Another point is the 130% deposit bonus with my Forex broker: this boosts the own eqidity rendite ,Couldn’t find informations so far wether future broker have similar benefits…
But as I mentioned, it’s actually just a hypothetical question because for private purpose my Forex broker is satisfying.

18

Sounds like a U.S. broker issue.

19

Futures.io is a forum you might be interested in. If I remember right, they recommend something like USD $10K to get started. Or that was for a single contract. Anyway, check that place out.

What’s the fine print with this bonus? Sounds like you have to keep it in the account or at least make some set amount of trades to keep it?

20

Thanks for the futures link- no need to go too much into bonus details, for my strategy is only important, that you can lock in immediatly what you earn with the bonus, its not so important that you have to “play-free” the bonus with a special number of traded lots, thats not my intention if i trade f.e. just for a “one-shot profit” speculation.
One of the bonus rules is, that you can withdraw any time without restrictions all the profit and all your own deposit, if you click an icon
" cancel bonus". Your bonus is gone, but you can withdraw the rest.
Thats for a contrary position strategy a big advantage. If i do such a strategy 100% with own money, it takes longer (more pips) to reach the winning zone- i have to ckeck that out with peculiarities of future accounts, maybe the strategy only works on forex-accounts, i ll see.