I don't get the hype over leverage. I can happily extract good profit each month on 30:1
- | Joined Oct 2006 | Status: Member | 117 Posts
To be one with the market, you must first be one with yourself.
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DislikedI don't get the hype over leverage. I can happily extract good profit each month on 30:1Ignored
Disliked{quote} I believe you, but with 1:200 or even 1: 400 you would't have to keep all your trading capital with broker, only necessary portion with some money management that you using know and rest of your trading capital would be sitting on your bank account and waiting for chance to work. And if something would happen with your broker, not all your money will be on risk.Ignored
Disliked{quote} Leverage = debt, and more of it you have the greater exposure you have to risk. When markets get very volatile, leverage is the bit that kills trading accounts. So you might think its better having capital free to do other things, when the shit hits the fan you will have to either accept account blowout or have to shift money out of other areas you seem to be useful to save your account.Ignored
Disliked{quote} 1.Leverage = tool 2.exposure to market is still same,on 1:30 and 1:200 account I have, max 3% of capital per trade 3.when markets gets volatile,exposure is still same 3%,leverage has nothing to do with it 4.when shit hits the fan,#3 applyIgnored
Disliked{quote} Leverage allows a small account to trade the same size as a large account. To state that it is no different can only mean one thing, you are trading small with high leverage. This is the only scenario it is no different. When markets are normal a pair could have a 60 pip avarage daily range. When markets are volatile, that could be 150 to several hundred. To assume that 3% risk in this environment is no different is naive.Ignored
Disliked{quote} Eco,again,leverage is only amount of money,your broker will blocked from your account to open position. Rest is money management,trading skills etc,etc.Ignored
Disliked{quote} You are referring to margin not leverage. You have a lot to learnIgnored
Disliked{quote} You are referring to margin not leverage. You have a lot to learnIgnored
Dislikedparking half the money in a bank account, and the other half at the broker, really means you are using extremely high leverage. ecotrader is correct, if the market moved against you by a slightly big move, you are taken to the cleaners; just like the gofundme boy from Jan 3rd this year. if you think your stop loss is going to save you, think again. obviously you have no clue that stop losses in those occasions, will slip big time. think the CHF depegging incident. oh yeah, you got a lot to learn boy you think the broker loves you when they give...Ignored
Disliked{quote} The money blocked for margin depends on the leverage used. That is Key difference in Trading. Margin is determined by the leverage. In few selected vulnerable events, brokers reduce the lev; thus demanding more margin. While a 50 lev blocks $2500 for 1lot, one can use the same amount as capital to trade the 1 lot with $250 as margin if lev is 500.Ignored
Disliked{quote} ohoh believe me,at my age I understand pretty good,how much I have to learn. Sorry I didn't express my thoughts precisely,but atleast SKLearn understood what I meant.Ignored
Disliked{quote} Margin depends on the brokers risk assessment of you as a trader and has diddly squat to do with leverage. Like banks offer debt at different rates, so do brokers. One broker might require 50 bucks margin for the same trade as another broker requiring 200. If a broker determines you are riskier than a professional trader, then the professional will require less margin to open the same size trade as you. Its simple debt risk assessment, nothing to do with the leverage size itself.Ignored
Disliked{quote} Margin depends on the brokers risk assessment of you as a trader and has diddly squat to do with leverage. Like banks offer debt at different rates, so do brokers. One broker might require 50 bucks margin for the same trade as another broker requiring 200. If a broker determines you are riskier than a professional trader, then the professional will require less margin to open the same size trade as you. Its simple debt risk assessment, nothing to do with the leverage size itself.Ignored
QuoteDislikedMargin depends on the brokers risk assessment of you as a trader and has diddly squat to do with leverage.
QuoteDisliked
QuoteDislikedIf a broker determines you are riskier than a professional trader, then the professional will require less margin to open the same size trade as you
Disliked{quote} {quote}{quote} yeah, right...that explains what you know about LEVERAGE, MMR and the relationship between them. Nothing wrong in that...everybody has something to learn and somewhere to start...now it is your turn to learn... babypips should be great help to you. https://www.babypips.com/learn/forex/margin-vs-leverage https://www.babypips.com/learn/forex/leverage-defined If your broker requires 2% margin, you have a leverage of 50:1. {image} good luck in figuring that out. PS: {quote} NAH. Broker offers same Leverage...Ignored
Disliked{quote} Here you go DUMBERASS. {image} Oanda says, the company is not willing to assume any risk on the instruments and puts default leverage(2%MMR to 12%MMR) on each instrument assuming all dumberass would use max leverage. If you want to trade big, bring more money to table, that is what OANDA says, DUMBERASS. I am not getting paid to teach...you better go and learn from babypips before show you know nothing about Forex by keep talking $#!@ like this.Ignored
Disliked{quote} A another idiot showcasing a bucket shop as his evidence of a hard tied relationship with leverage to margin requirements. Try ask them for a 4% margin on a 500 lot position on eurjpy and they will tell you where to go stick it. Showing bucket shops that have categorised loser retail traders into hard defined ratios is NOT representative of margin requirements relative to leverage.Ignored