Yes this leverage is perfect for experienced traders. As a new trader one should trade with maximum 1:200 leverage. High leverage can be a killer if you not manage it well i brings margin call soon . When traders are using it without any plan and strategy.
High leverage is definitely a profit especially if you dont have much funds. The higher the leverage the lower the margin. Thats all the leverage does. Its traders responsibility to be disciplined and do not open to big positions. Of course high leverage can be a killer if you open too big position. But its trader to be blamed, not leverage. If you stick to your startegy and dont go crazy then in my opinion the higher the leverage the better for you.
Yes this leverage is perfect for experienced traders. As a new trader one should trade with maximum 1:200 leverage. High leverage can be a killer if you not manage it well i brings margin call soon . When traders are using it without any plan and strategy.
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Probably for some beginners it is the answer... But we've been through this million times: manage account, trader control, don't get crazy, low risk and bla-bla... Maybe the problem is in psychology, not in leverage. If trader want to save and increase money so need to see everything realistic. Leverage is an instrument, not a risk limiter.
I prefer lower leverage, high leverage will change your trading mind and disturb trading plan, general speaking 1:100 should be normal leverage, but high leverage should be suitable for small funds.
I personally use leverage of 1:100 as it suits my carry/trend strategy and the amount of equity I have to cover my used margin ratio...I don't think it is a bad idea to use higher leverage sometimes up to 1:300 or 1:400 but potentially for shorter term strategies, using stop loss and keeping sufficient equity to absorb any unexpected rally.
trading using high leverage is very beneficial because we will have greater opportunities, and therefore I choose to trading using high leverage. Indeed trading with high leverage, the risk of that happening is also very high, for it must always use MM and RM either
I use 1:200 leverage. Very comfortable for my. Much depends on the account balance and the trader experience, but as for me, this is the most convenient option.
I prefer to trading using high leverage, trading with high leverage will allow us to have a lot of opportunities, and therefore we must take advantage of leverage properly so that it will benefit us. for that I choose to trade with leverage 1: 1000
I'm new so I may be wrong, I've only traded on demo account.
Say you have $500 in capital and you lose your account through margin call at 10:1 leverage
on a 100:1 account you would only have to put $50?
by not having a lot of money in the account, if they margin call on the $50 so be it its $50 but a loss of $500 anyone would notice.
$500 means different things to different people sometimes its considered a lot sometimes its not but if you go off what you can buy with $500 compared to $50
id rather lose the $50
Have I got this right in what I'm thinking??
Also the point in having billions, this may be peoples goals but the reality is a lot of people who grow up with not a lot of money, have a hard time spending large amounts of money once they get it, because they remember when they worked 9-5 it took them weeks to earn $1000 or what ever the number is.
at the moment I'm only happy with losing about $30 on a trade, any more I wouldn't be able to handle. But that's because my circumstances have changed, and money lost is money I could of spent on my son.
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Joined Mar 2013
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Selecting the right forex leverage level depends on a trader’s experience, risk tolerance and comfort when operating in the global currency markets. New traders should familiarize themselves with the terminology and remain conservative as they learn how to trade and build experience. Using trailing stops, keeping positions small and limiting the amount of capital for each position is a good start to learning the proper way to manage leverage. If you are conservative and don’t like taking many risks, or if you’re still learning how to trade currencies, a lower level of leverage like 5:1 or 10:1 might be more appropriate.
I prefer to trading using high leverage, trading with high leverage will allow us to have a lot of opportunities, and therefore we must take advantage of leverage properly so that it will benefit us. for that I choose to trade with leverage 1: 1000
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How much leverage is more appropriate for you it depends on your trading plan with risk managing policy. Leverage ratio is not a big deal, 1:400 leverage also can bring profit very rapidly if you know how to manage risk.
Hello, Which is better for a beginner : Having a high leverage with small position size or having low leverage with small position size ? I have 2 demo accounts both are loaded with $700 When I opened a position on my 1:500 leverage account (0.5 lot) the used margin was ~$100 so I had $600 free margin (Trade volume 50K) When I opened a position on my 1:100 leverage account (0.5 lot) the used margin was ~500 so I had $200 free margin (Trade volume 50K) Having a less free margin means less ability to handle floating loss and as you know the prices...
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At the risk of repeating myself, it is about maximum draw down from peak, back test your strategy and work out the likely maximum draw down from any given peak this will show you how much leverage you can "safely" use based on your risk tolerance, for me 15% draw down of my available cash is my limit, for my main strategy that means 1% of my capital is risked per trade and for my secondary strategy only 0.5% risked per trade.
I live entirely from the growth of my personal trading account
Yeah, but to determine it and most importantly to pre-determine it is quite a difficult task so we need to be very much careful if we are using a Leverage.
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I can see that the level of interest to be paid is critical to the leverage proposition. With very low interest rates, many more investments meet the expected minimum hurdle of returning the interest paid and vice versa. Some would even say that ultra-low interest rates create an unhealthy misallocation of capital resources, inducing investors to make investments that have insufficient returns over the long term. So, for beginner traders should use low leverage what they can afford to lose, otherwise I do not suggest to use leverage if you are newbie.
Leverage doesn't really matter. No matter what leverage you choose to trade with you need to appropriately set your position size to reflect your risk/reward strategy.
I trade with the highest leverage just so that I have access to it if I need it. But my risk profile remains the same regardless of leverage.
Selecting the right forex leverage level depends on a trader’s experience, risk tolerance and comfort when operating in the global currency markets. New traders should familiarize themselves with the terminology and remain conservative as they learn how to trade and build experience. Using trailing stops, keeping positions small and limiting the amount of capital for each position is a good start to learning the proper way to manage leverage. If you are conservative and don’t like taking many risks, or if you’re still learning how to trade currencies,...
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I think 1:5 , 1:10 is very small trading leverage for the retail Forex traders! Yes, I know, using high trading leverage is costly, but traders have to select a decent trading leverage for making a good trading result! I seem, 1:100 is the perfect choice for the new traders!
Leverage is something which gives you the liberty to trade more, which means gaining more and at the same time it involves the risk of losing more. As a newbie you should start with low leverage only, but once you gain enough experience and expertise you can go for higher leverage too. High leverage leads to a win-win situation for those who know how to change their trading style with changing market conditions.
