CFD chat

   If you're trading CFD's, ie. Margined.... how do you calculate position size if you're trying to keep your stop loss to 2% of equity.
Eg: Let's say I want to buy LNN at 5.77 and my initial stop loss is at 5.31. If my trading bank is $5000 then my position size will be: $5000*2% = $100risk; $100/0.46 (5.77-5.31) = 217shares!
That's how I would normally enter the market buying the shares, but how do you approach it in a margined situation like CFD's, because if your stop is at 5.31, and it's hit, you'll lose more than your 2% of equity.

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davkell Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 01 Dec 2004 Location: Australia Posts: 47	Post Options Post Reply Quote davkell Report Post Quote Reply Posted: 21 Jan 2005 at 10:25am
	If you're trading CFD's, ie. Margined.... how do you calculate position size if you're trying to keep your stop loss to 2% of equity. Eg: Let's say I want to buy LNN at 5.77 and my initial stop loss is at 5.31. If my trading bank is $5000 then my position size will be: $5000*2% = $100risk; $100/0.46 (5.77-5.31) = 217shares! That's how I would normally enter the market buying the shares, but how do you approach it in a margined situation like CFD's, because if your stop is at 5.31, and it's hit, you'll lose more than your 2% of equity.
	"Trade Your Way To Financial Freedom."

Owen Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 15 Nov 2004 Posts: 97	Post Options Post Reply Quote Owen Report Post Quote Reply Posted: 20 Jan 2005 at 5:08pm
	I've traded a few times with Getfutures. I think it's OK, but their platform doesnt show market depth, and sometimes I have orders not filled when I think they should be filled. That's obviously annoying. Their brokerages 0.1% if over 10K, same as CMC. If <10K, brokerage is more than CMC. After reading the Reef Capital page I think I'll try Man Financials or wait for Etrade.

Cobra Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 08 Nov 2004 Location: Australia Posts: 76	Post Options Post Reply Quote Cobra Report Post Quote Reply Posted: 20 Jan 2005 at 3:16pm
	Thought I'd start a topic for CFD's for anyone wishing to chat about good or bad experiences with CFD's or providers.