Is trading like gambling ??

Denver, CO.

Answer is my Dealer/Marketmaker guarantees in writing that I will never have a negative balance!

I'll have two beers thank you...:)


Quote from fandelem:

where do you live ES??? i'll buy you a beer to hear your spiel on leverage :)
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Quote from ElectricSavant:

Answer is my Dealer/Marketmaker guarantees in writing that I will never have a negative balance!
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A slot machine will not allow a negative balance either.
 
Quote from ElectricSavant:

But does it pay YOU interest while you use it?
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Yes actually in the form of house comps.

Without addressing your specific case which I know you can't wait to bring up, the fact you can't below zero in and of itself does not make something not gambling.
 
Did I say remove gambling...re-read

Actually in leverage I can remove ALL risk. ask me how....Careful, gnome had to buy me a beer...


Quote from winter:

Yes actually in the form of house comps.

Without addressing your specific case which I know you can't wait to bring up, the fact you can't below zero in and of itself does not make something not gambling.
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Quote from ElectricSavant:

Did I say remove gambling...re-read
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That's what this thread is about

Actually in leverage I can remove ALL risk. ask me how....Careful, gnome had to buy me a beer...
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I don't want to know - how much is it going to cost me for you to not post about it?
 
Quote from ElectricSavant:

But does it pay YOU interest while you use it?
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I don't understand.. your dealer/marketmaker doesn't let you have a negative balance.. but is that because s/he will liquidate your assets when a net liquidation of 0 is reached?


also, what kind of interest rates are we talking about.. the 4% money market type interest rates?
 
nope..... positive interest carry on the leveraged (not even your money) amounts....yes liquidation can occur..

But here is an example anyways for you naysayers....

go long AUD/JPY for example from 87.60....(its in the triple digit APR's)

it can only go to zero....you just defined infinity....

If it goes long grid your way through it taking TP's, until you find the top....then size your trade to last until the bottom...what the heck average down if your real good with math and geometric progression

I will add one more thought...pull you original stake out...and trade with house money that can never get you negative again.

I will have a large beer...thank you.

Michael B.


Quote from fandelem:

I don't understand.. your dealer/marketmaker doesn't let you have a negative balance.. but is that because s/he will liquidate your assets when a net liquidation of 0 is reached?


also, what kind of interest rates are we talking about.. the 4% money market type interest rates?
More...
 
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