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Luke-D

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About Luke-D

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  1. I think what is confusing me are statements like "The margin is 5%." This means the margin = the money that I supply, on top of which is the broker's money which is not shown? Or does the value in the "Margin" box include the money the broker is lending me? Moreover, I've heard reference to leverage being an account setting. Is it possible to set the leverage of my demo account to 1:20 rather than 1:50?
  2. Thanks. It seems that the margin is automatically calculated, and I cannot change it. It seems that leverage is quite high in some cases (35:1 or even 50:1). I want to do long term trades using less leverage so that volatility doesn't come back to bite me. Is there no option to lower this ratio to, say, 10:1 or 20:1?
  3. Hi guys. I've got some really basic questions which, after some quick searching, I haven't found the answer to. Every where it's explained seems to presuppose prior or additional knowledge that I'm missing, so please bare with me as I ask really simple questions, or point me to a really, really, take-nothing-for-granted explanation! I've learned the basics of risk and money management, analysis, and have a simple system I'd like to test in a demo account. Now it's time to figure out the mechanics of placing trades and punching in the right numbers. I'm using IG's Workspace. I've started with 9,059 GBP. Now, let's say that I want to place a trade, on, say, USD/JPY and "Buy" at x10 leverage, with a stop loss of 1% my account (90GBP). Alright, let's figure this out: Firstly, I see three options: Deal, Order, Alert. "Deal" seems to be what I want, for placing a regular trade. Correct me if I'm wrong. Under the "Deal" tab, I've got three options: Size, Stop, and Limit. For the yen, Size is given in terms of "contracts," where 1 contract = 1000 yen per point. Okay, so I guess I can buy a 10,000 yen position which is equal to 10 points. Am I correct so far? Now, is this position leveraged? What leverage am I using, and where is that displayed? Is that leverage factored into this price? Also, how do I know how much I am paying for the contract in GBP? Also, how much is "1 point" on the chart? How can I confirm that I have the right values before placing a trade? I've watched this video, and it explains none of this: https://www.youtube.com/watch?v=dtodgGPczxU&list=PLOGjoJXp0cmpVNwvNbeAWnH_nu2RaLv4q&index=2 What am I missing?
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