Log in or Sign up. It is easier to manage risk without leverage. Can one trade futures and forex without leverage? No, they are leveraged products. You can play with small positions vs your capital. People are confused about it. You can buy one E-mini in an account with balance equal to face value and you will be 1: See this expert article for details. Pricechange , Laissez Faire and cdcaveman like this. That is not accurate.
Most do trade currencies on a leveraged basis but that is not a requirement. You can open a non margin account and trade currencies. Or you can trade currencies in a margin account up to the size of your account balance. You can even adopt an unleveraged buy and hold portfolio through futures - it might be better than holding the underlying depending on the way you are taxed - for instance if you suffer high witholding tax on dividends but not tax on cap gains, ES sound like a good alternative to Spy.
I regulary do unleveraged forex trades but they are more about rebalancing currency exposure, seeing how the USD moved since last year there was still money to be made unleveraged. Leverage allows small traders to profit from small moves. Without leverage you need long sustained moves to make any kind of significant money.
That is why I almost never trade and only buy and hold in my cash account. But in spot or futures I suddenly have 40 times more money, and a small move for the world can be a very big move for me a small trader.
Or trade thru EBS. You can deleverage your position by using options buywrites with lower total delta exposure. In addition, you can maintain higher cash balances to effectively produce a de-levered exposure. The higher the market goes, the less excess capital you need to maintain in your account. This is highly simplistic. You will have increased your exposure to changes in volatility. And, there is forward curve and basis effects you may want to worry about compared to just buying SPY.
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