Hello everyone,
I've started trading forex and commodities with a CFD broker.
I've noticed the disavantages that everyone mentions everywhere (slow, delayed, not 100% reliable connections, price information manipulated by spreads, and so on).
But there is an important advantage that I noticed as well wich brings some advantages specially for swing trading. The fact is that if a trade is generating profits these can be used as collateral (margin) for new positions, even before the trade is closed and the profits "locked in" , therefore incresing overall leverage.
Now, I would like to ask if a regular FOREX or futures broker accept this kind of "collateral" for opening new positions as well or if you need always actual cash.
If this question is non-sense (for any reason) don't take me wrong.
I just started now trading these kind of leveraged products.
I've started trading forex and commodities with a CFD broker.
I've noticed the disavantages that everyone mentions everywhere (slow, delayed, not 100% reliable connections, price information manipulated by spreads, and so on).
But there is an important advantage that I noticed as well wich brings some advantages specially for swing trading. The fact is that if a trade is generating profits these can be used as collateral (margin) for new positions, even before the trade is closed and the profits "locked in" , therefore incresing overall leverage.
Now, I would like to ask if a regular FOREX or futures broker accept this kind of "collateral" for opening new positions as well or if you need always actual cash.
If this question is non-sense (for any reason) don't take me wrong.
I just started now trading these kind of leveraged products.