Leverage : forex , what's the big deal.

[s-a]

Jtrader-

U mention ACM- someone told me about them and i am currently looking at them- BUT they seem to operate from Swiss- I have heard negative stuff about some Swiss firms- what do u know about them ??

thanks
Al

Is this the one that uses a FLASH application as their trading platform? If it is do not even consider them. They say what you click is what you get but I know first hand from a very good friend that they just screwed big time.

HG

 

[JTrader]

s-a
Just when the new wording on "gaurantee" was changed I traded lightly just prior to an NFP report. I had a stop entry order 40 pips away from market before the report. After I was filled, I got 30 pips of slippage. This was with TradeStation FX which uses RJO FX.

HG

Is it the case that generally with retail spot forex brokers slippage without a requote only occurs on orders that would usually be placed in advance - such as STOP orders, and not orders that you place on a live basis to execute now - such as a market order? With orders that you place on a live basis being requoted and requiring your confirmation/acceptance of the requoted price, if they were not filled at the price that you clicked on? (I can only talk of my experience with CMC.)

Cheers

jtrader.

 

[s-a]

You could be right jtrader. The same friend I mention above uses ITX to place all his orders and he tells me he gets a requote on _some_ platforms, not all. So I must assume that it is up to your brokers software.

HG

 

[JTrader]

Oanda policy on guaranteeing that a clients account balance cannot become negative...

OANDA responded to your help desk request:
_______________________________________________
Hello,

Thank you for your interest in OANDA and our FXTrade platform.

Part of our customer agreement guarentees that a customer's account value will not become negative under any circumstances. This policy is put into practice through having automated stops on account positions when a margin call level is reached. As well, we have no small print in our customer agreement which allows us to get out of this policy.

If you have any other questions please do not hesitate to contact us.

Best Regards,

This does sound pretty explicit. Furthermore, Oanda do not have a risk disclaimer on their website.

Cheers

jtrader.

 

[JTrader]

Oanda policy on guaranteeing that a clients account balance cannot become negative...

Hi

I posed the follwing question/scenario to the Oanda representative........

so if a big event occurred in either the Financial World or the World at
large, meaning that banks in the interbank markets withdrew their liquidity
and quotes - meaning that Oanda were unable to offer me a price or close out
my trade, and when you were eventually able to close my trade - 1000 pips
slippage had occurred on say EURUSD, meaning that my account balance in
theory would be "minus $20,000" - would Oanda - concede these losses and
foot the bill themselves - meaning that my account balance fell no lower
than $0 - and that I would not owe Oanda any more funds?

Here is the reponse that I received.........

Your are correct in understanding that OANDA will not claim funds from you in the event of an extreme market gap. In addition to automatically closing your positions with a margin call, the maximum leverage offered is 50:1, which minimizes the chance of your balance turning negative. This leverage rule applies to everybody.

Again this seems to remove my worst fears.

Cheers

jtrader.

 

[JonnyT]

Just wait till it happens.

Read the small print.

JonnyT

 

[s-a]

Thanks for digging that information out JT - gives me some confidence in Oanda compared with _so_ many other brokers.

HG

 

[TheBramble]

which minimizes the chance of your balance turning negative...

No axe to grind. But I would ask them to expand on that if you're looking for complete peace of mind and total safety.

Having said that, one of my favourite quotes (from Helen Keller):-

"Security is mostly a superstition.
It does not exist in nature, nor do the children of men as a whole experience it.
Avoiding danger is no safer in the long run than outright exposure.
Life is either a daring adventure or nothing."

It's alright, I'm OK now. No more poetry or quotes today....honest.

 

[JTrader]

Just wait till it happens.

Read the small print.

JonnyT

Wise words JT...........it may sound like a cliche, but the smallprint should NEVER UNDER ANY CIRCUMSTANCES be overlooked!


Thanks for the poetry TheBramble

are you indicating that the possibility of financial ruin (no negative equity protection) may just add that bit of excitement that some traders need to get the adrenaline flowing? Could this be looked upon as a "traders edge"?

Cheers

jtrader.

 

[JonnyT]

I must admit I had a little look at and first glance it does seem to state that the account cannot go negative though I would get this checked by a solicitor prior to relying on it.

You could probably exploit this...

JonnyT

 

[JTrader]

RJOFX policy on guaranteeing that a clients account balance cannot become negative...

Hi

here's further correspondence that i received from RJOFX -

"RJOFX small print

"Disclaimer: *Trading Foreign Exchange carries a high level of risk and
may not be suitable for all investors. _There is a possibility that you
could sustain a loss of all or more of your investment _ therefore you
should not invest money that you cannot afford to lose. You should be
aware of all the risks associated with Foreign Exchange trading.

Zero slippage on orders* (on trades up to 20 million currency units. No
slippage during normal global exchange trading market hours Sunday 5:00
pm ET until Friday 5:00 pm ET, with the exception of periods of extreme
market volatility)."

jtrader -

Hi
you said that "We do guarantee that client accounts will not go debit
regardless of market conditions." However, the above smallprint appears
on the RJOFX website. *What exactly is the RJOFX position with regard to
guaranteeing that a clients account value cannot become negative?

Many thanks

RJOFX Representative -

I apologize for the confusion. The only way you will go debit is if you have
subscriptions to any fee based services through us, in which you are auto
liquidated and the fees add up to be more than the equity you have available
in your account. You can not go debit due to the loss of a trade. We wait
until the clients equity drops to 25% of the actual margin requirement
before effecting auto-liquidation.

Cheers

jtrader.

 

[JumpOff]

I must admit I had a little look at and first glance it does seem to state that the account cannot go negative though I would get this checked by a solicitor prior to relying on it.

You could probably exploit this...

JonnyT

Or perhaps just use it to establish a mutually agreeable relationship?
JO