Trade size

[AN13]

Hello, newbie question here. I currently am trading with 1.5% of balance risk which is typically an exposure of aroun £1000. If this were to increase is it harder to open and close trades - i.e. the larger the amount the harder to trade. And is there a natural ceiling where it just gets to hard to trade and multiple accounts or some other strategy is needed?

Thanks

[TheYOLO]

What do you mean by harder?

Are you thinking that your position size might get that large that it will effect the market? The FX market is a trillion dollar market, it takes a lot have an impact. Unless you trade exotic maybe. I've wondered this myself. 

If you are referring to a growing account and larger lots having a psychological on you - I think this comes with training. So start small and work your way up? Don't know, have not gotten to the "big leagues" yet 🙂

[AN13]

Thanks for the reply. It was the former rather than latter. I was just wondering if it gets harder to fill trades where there's a much larger size. I guess that may be the case for some of the exotic currencies but probably OK for the more vanilla ones. Hopefully my trading account will allow me to find out one day!

[jlz]

Check the market info. There you have the usual position size range and the margin required. 

If you are betting more than 2250 per point the margin required gets quite big. I guess they consider a bet, of that amount per point, big enough to start limiting it. 

You will have to check that limit per market. They will probably change for less liquid markets. 

[AN13]

On 16/01/2021 at 14:31, jlz said:

Check the market info. There you have the usual position size range and the margin required. 

If you are betting more than 2250 per point the margin required gets quite big. I guess they consider a bet, of that amount per point, big enough to start limiting it. 

You will have to check that limit per market. They will probably change for less liquid markets. 

Perfect, thanks. Will let you know if it becomes an issue!