Now that I've got your attention I want to bring to highlight an ongoing debate I have with myself and I've seen others have different viewpoints on. It's in regard to how to measure increase or loss in a non-biased fashion. I'm not talking about money/equity, which is biased. Someone making $10k always does 'better' than someone making $1k but if it took $1mil to make that $10k, and the $1k guy used only $1k to make his, who would you trust with your money? It appears to me that many traders and speculators of all sorts take the whole account size as a basis for their 100%. While this makes sense for a more traditional approach to investing it seems to fall short of conveying forex dynamics.
I feel that leveraged margin used seems closer to how much 'money' I'm using to open the position. So whether it's a mini or a full lot, or 10 lots, it represents the same thing. Whether the account is $100k or $1k the percentage of used margin levels the playing field for measuring progress. This is just my own take on it.
If I really take it to a counting nuts perspective to it. If I only 'spend' 30 'nuts' on one full lot and the price moves 5 pennies in my favor in a couple weeks I'm up 5000 'nuts'. With the nature of currency exchange and the high leverage you don't really spend that used margin sum to produce the return, you only really spend the spread. After that you're in the green...er, black. That really is not as representitive of the margin used either but dam that percentage looks assssstronomical!
That's why I feel margin used is just right!
Whut does ya'll think?
Woop woop! Multiple choices allowed and votes will be displayed!
I feel that leveraged margin used seems closer to how much 'money' I'm using to open the position. So whether it's a mini or a full lot, or 10 lots, it represents the same thing. Whether the account is $100k or $1k the percentage of used margin levels the playing field for measuring progress. This is just my own take on it.
If I really take it to a counting nuts perspective to it. If I only 'spend' 30 'nuts' on one full lot and the price moves 5 pennies in my favor in a couple weeks I'm up 5000 'nuts'. With the nature of currency exchange and the high leverage you don't really spend that used margin sum to produce the return, you only really spend the spread. After that you're in the green...er, black. That really is not as representitive of the margin used either but dam that percentage looks assssstronomical!
That's why I feel margin used is just right!
Whut does ya'll think?
Woop woop! Multiple choices allowed and votes will be displayed!