Unable to Trade Tight Stops Due to Broker?

Beginner Questions
1

I’m new to FX but tried to place a trade on EURUSD earlier that was a 5 pip stop loss and was risking only 1% of the account. I calculated the position size and it called for margin that was 20x my account size. The broker I use is Interactive Brokers who says my margin is only 4x my account. Is this normal? This would make scalping impossible. My strategy calls for having around 4-5 concurrent trades which would mean I would need around 100x margin.

Perhaps I calculated my position size wrong? I have an $80k account, risking 1% ($800) and a 5 pip stop loss which meant the position size I got was $1.6M.

Any help would be HUGELY appreciated.

2

I have an account with IB as well, but don’t use them to trade forex due to their low leverage (x3-4). I use them to trade stocks and futures. Have you looked into currency futures?

If you’re only trading FX then I would recommend using a broker who specializes only in FX. I use OANDA (x50), but you should do your due diligence and find a reputable, regulated broker in your country with tight spreads.

3

I think, you should close live account and gain more knowledge before lose your capital

1 Like
4

Come over to Coinexx… unregulated overseas broker btc deposit 500x leverage with low spreads. :sweat_smile:

1 Like
5

AS long as you’re not keeping large sums of money here, then you do you. Fortunately, with 500x leverage you don’t need much.

My questions would be:

  1. Does it accept members in my country?
  2. How easy is deposit/withdrawal?
  3. Platform? (MT5, I looked)

Just be prepared, since they’re unregulated, to have them disappear one day.

6

BTC withdrawal. Yep! The next FTX, Madoff is being run right now somewhere.