cTrader = no liquidation on an account - which account type?
cTrader = no liquidation on an account - which account type?
16 Nov 2021, 05:34
which account type do I use to trade spot trading only with no leverage.
If the price drops significantly and equity drops into negative I do not want the account being liquidated.
How do I set such an account up on cTrader?
Example: On eToro - I can buy Apples stock (Spot) - no leverage. Simple buy and hold.
if Apple share price drops my profit and loss shows negative - which is fine as I can just wait for the price to rise again before selling.
I want to trade like this with cTrader and do not want account to ever get liquidated by broker.
how do I do this?
Replies
blockchainTrader1
16 Nov 2021, 09:51
( Updated at: 21 Dec 2023, 09:22 )
RE:
PanagiotisCharalampous said:
Hi blockchainTrader1,
You can do this with any leverage account. Your account's leverage just defimes the upper limit of volume you can use. But does not restrict you from trading lower volumes than that. If for example your account has a balance of 1000 and you want to buy stocks worth of 1000 valued at 200 each, just buy 5 stocks.
Best Regards,
Panagiotis
Let me ask it this way.
If I open an account 1:1 leverage
$1000 balance.
Buy 5 positions at $200 each.
If price drops to $1 each in a month - would my account be liquidated
Second month the price rises to $400 each - would I land up with profit or would account have been liquidated at $1 dollar due to margin threshold being hit.
reason: When I try this on backtesting tool - the backtesting tool just stops when equity goes into negative - (I assume this is due to liquidation taking place)
Is there a way to get the backtesting tool to keep going and not stop when - equity reached so when the price recovers I can see the profit that would be made?
See screenshot below: I have 1:1 leverage account - when backtesting runs it stops as soon as ending equity goes into negative???? Since I didn't use leverage how is this possible?
@blockchainTrader1
PanagiotisCharalampous
16 Nov 2021, 10:14
Hi blockchainTrader1,
If your account is stopped out, then you are obviously using leverage. You are opening positions with a value higher than your account's balance/ The account's leverage does not matter and has no effect to the size of positions you are opening. If you don't want to use your account's leverage, just don't use it and open positions with a value that does not exceed your account's equity.
Best Regards,
Panagiotis
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PanagiotisCharalampous
16 Nov 2021, 08:13
Hi blockchainTrader1,
You can do this with any leverage account. Your account's leverage just defimes the upper limit of volume you can use. But does not restrict you from trading lower volumes than that. If for example your account has a balance of 1000 and you want to buy stocks worth of 1000 valued at 200 each, just buy 5 stocks.
Best Regards,
Panagiotis
Join us on Telegram and Facebook
@PanagiotisCharalampous