leverage and margin

Apologies for commenting quite late.
Question: with $200 as your capital what is your monthly expectation? 10%? 20?
Is that number worth your time and effort?
Babypips recommendation factors in what you can earn from your investment too

If you're new, you need to stick with any leverage less than 100. However, if you are an experienced trader, you can go as high as you prefer. Personally, both tradersway and FXCM offer me high end leverage - that doesn't mean that I need to go all the way. Frankly, quite happy with my 200 setting, but guess it all comes down to the individual. Just remember, higher the leverage, more the risk..

Don't agree with you, I have had use 1:2000, 1:1000 and 1:400 and as for me the most profitable and convinient was 1:2000, because the margin level becomes the smallest.

with mini account how much free margin should I have. account manager told me 200% least is this correct or to high

Of course the margin required comes down with increased leverage..and there's the inherent risk with bad mm, and just remember, more leverage, greater the impact on your account - both ways.

leverage has a relationship with margin. Trading using high leverage, the margin required is very small of course it is an advantage for traders who have little capital. therefore, we need to be able to utilize leverage well

I use low leverage it prevents me from over trading and doing stupid large trades that are way to risky my partner uses high leverage and prefers it but we both use small lot size I trade .01 lots for every $1000 which is low risk

leverage effect with the margin where trading using high leverage, we will gain a small margin. But we need to be careful with leverage because we will be able to trade with greedy if we choose high leverage, it is very dangerous to our account

Leverage can affect our free margin once volatility starts to compile.I think we need a good money management knowledge and need to use small leverage.High leverage is always risk in the trading

Leverage always affects your margin , and, therefore, your margin level, which in turn is used to execute stop out for your orders so it's very important to look into these definitions and get familiar with them.

I am having hard time understanding leverage and margin. Traders are saying that high leverage can wipe out your account, but I don’t see why. With HIGH leverage you will have lower margin and all you can lose is your margin – NOT your account. Isn't it? However, LOWER leverage will have higher margin and if we are poor money or risk managers, then we could lose much more.

As I see it, the most important thing is to have an OPTIMAL margin in an optimal environment, a relatively good trading strategy and a good money and risk management. For example, in a more volatile market it is better if a margin is higher (lower leverage), because there is more room for error. But, if a breakout is predicted, then it is better to have higher leverage (lower margin), because this will multiply your profits. If a market turns around and against you, then you will only lose minimum. In other words, I would adjust my leverage to the VOLATILITY of the market. I am not suggesting that we should use margin as a Stop Loss, but it seems to me that it is a kind of Stop Loss - it protects you from ruin. So, in my understanding, margin call is a bad thing only if you have a Low Leverage and bad risk management. Also, it is a bad thing, if you have a High Leverage and your strategy sucks, because if Margin Calls add up, then slowly, but only slowly, they can wipe you out.

So, in my understanding, margin call is a bad thing only if you have a Low Leverage and bad risk management. Also, it is a bad thing, if you have a High Leverage and your strategy sucks, because if Margin Calls add up, then slowly, but only slowly, they can wipe you out.

As a beginner trader, a complete and fearful noob, who only trades on a practice account, and who is extremely confused about this issue, I want to understand how this works. Am I thinking right? Or am I totally wrong? I am grateful for all good answers. Thank you very much.

P.S. Sorry for posting my question here, but Forexfactory does not let me to open a thread, because I am a new member.

high leverage and minimum margin requirement are an important financial tool which an investor should consider when choosing a broker. but generally high leverage causes a great losses if there is no real money management.

I don’t think so it’s a big deal when choosing a broker , only trading spreads we consider when it is time to choose a right broker.