What size can you day trade?

Trading Systems
1

Hi,

Is day trading capped at a relaitvely low account size? I mean are there any day trading Hedge Funds out there? Or is the maximum you can day trade too low for this?

What is the maximunm sixe you could day trade one curreny pair? Is $3M+ possible?

Thank you

2

its very much possible one of the largest hedge fund day traders is Toby Crabel he even wrote an excellent book describing his findings on opening ranges and breakouts. A lot of is work has been implemented by well known traders like Linda Rashke.

from what I’ve read though hedge funds (classified as large speculators as per CFTC) trade currency futures on regulated exchanges like the cme.

Dunno about max size. No doubt with a large size it is difficult to get in and out nimbly but it is possible and has been done although day trading hedge funds may not be very popular.

3

OK let me ask another question.

Is anyone trading big day trading FX? i.e. $500,000+? Or are most people trading really small (less than $50,000)? Anyone $1M+

4

You’ve read incorrectly. The big players use the inter-bank forex market and ECNs more than futures. It’s a much bigger/deeper market with greater flexibility and lower transaction costs.

5

I’m not a day trader myself, so I can’t directly answer from experience, but I don’t see any reason why you can’t do $1m+ day trades. Brokers probably love that because it means more income for them. Some brokers do have limits, but I think you need to be up around $10m+ to run into that problem.

6

Yes I was lead to beleive this as well. I hear futures currencies aren’t that big. Well, not big enough for Hedge funds to trade. Not enough liquidity.

from what I’ve read though hedge funds (classified as large speculators as per CFTC) trade currency futures on regulated exchanges like the cme.
You’ve read incorrectly. The big players use the inter-bank forex market and ECNs more than futures. It’s a much bigger/deeper market with greater flexibility and lower transaction costs.

John Forman
Author - The Essentials of Trading
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7

Most individual traders are trading small simply because that’s all they can afford to do. But of course there are plenty of people trading 500K+ daily. It’s just a matter of how deep your pockets are.

If you have to be leveraged all the way out in order to make a 500k+ trade then obviously it would be a stupid thing to do and you’ll risk being issued a margin call.