Profit Guide to Forex
Forex Profit Systems

Forex trading FXCM platform?

I'm demo trading using the FXCM Trading Station which comes with $50K in virtual funds. How does trading more than that amount at the same time work? - I opened four positions; one with $30K and three with $10K. I was expecting a 'helll no' sign, but there was no sign of the sign language I speak.

Public Comments

1. I believe you're referring to leverage. For mini accounts, they normally give you 200:1 leverage at FXCM.

What this means is that in order to control $200 in the market, all you need is $1. Since mini-lots are $10,000, all you would need to control one mini-lot would be 10000/200 = $50.

In your case, you opened one position with 3 mini-lots ($30k), and 3 more positions with one mini-lot each. It looks like you had 6 mini-lots open at the same time. This requires $50/lot * 6 = $300 in margin requirement.

Conceivably, you could open positions totaling 50000*200 = $10 million in open positions with $50K in margin. This would obviously not be advisable because you could easily wipe your account over leveraging yourself.

2. These funds are (demo or live) at 1:100 or better. So in effect you only used $600 in margin.

You should start reading at least 4 books on Forex trading and another 3-4 on technical analysis. Doing anything less will leave you totally unprepared for FX trading. Demo trading can be very decieving.

Also read;
Millionaire Traders by Kath Lein & Boris Schlosberg (great book, they used to work for FXCM.... now they're with GFT.... of the two companies.... I like GFT more.... great customer service).