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What leverage is best for a newbie?

  • #201
  • Sep 2, 2020 2:30am Sep 2, 2020 2:30am
Quoting Jasonravera
I'm planning to go live, i have 6 months of demo experience in trading and before i start, should i pick a high leverage or low ?
Better use a low leverage, even if u have 6 months demo experience.
  • #202
  • Sep 2, 2020 11:03pm Sep 2, 2020 11:03pm
Quoting split_unit
{quote} Dude, you don't even know what leverage is and you prefer lot size language, yet you want to trade?! Unbelievable.
Special for you bro
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  • #203
  • Sep 3, 2020 6:37am Sep 3, 2020 6:37am
Quoting bunnyy
{quote} Better use a low leverage, even if u have 6 months demo experience.
the experience we take from demo account actually not works in a real account , its a very common thing but true fact . same experience i have gathered when was a new in trading.
  • #204
  • Sep 3, 2020 7:20am Sep 3, 2020 7:20am
I think no leverage 1:1 or 1:10 would be best for newbie and experience trader that want to try new EA since backtest doesn't reflect 100% on the real account.
  • #205
  • Sep 3, 2020 4:32pm Sep 3, 2020 4:32pm
Quoting mabztrades
I think a newbie should trade with a lower leverage not the standard 1:500 that is being pushed by brokers. Coz when you are starting out, you usually make impulsive decisions on trades and it's possible to lose big especially since you don't fully understand. So I would suggest a lower leverage such as 1:100 or 1:200 for newbie's but that's just my opinion.

And why? If I have rules and MM and I'm risking let's say 1% of my equity per trade, why is higher leverage danger to me?
Whether you think you can, or you think you can't,you're right. H.F.
  • #206
  • Sep 3, 2020 5:12pm Sep 3, 2020 5:12pm
plz use cent account and dont use standard account while u r still in learning phase,because losing eral money in cent account is less hurtful than in standard account.
  • #207
  • Sep 3, 2020 8:28pm Sep 3, 2020 8:28pm
no matter if you are trading 50:1 or if you are trading 500:1, if you place a trade on metatrader for 0.01 lots on eurusd you will get $0.10 profit or loss per pip(0.0001)

at 50:1, that 0.01 lot trade will now require approx $23.70 of margin.

at 500:1, that same 0.01 lot trade will require one tenth of the margin, or $2.37

you have much more trading/buying power with higher leverages, but that doesnt mean that you need to use it all at one time.

and keep in mind that margin call will usually occur when your equity is <= marginused, which means that with a higher leverage account you have more leeway to not hit a margin call.

that is margin/leverage 101.

  • #208
  • Sep 4, 2020 1:26am Sep 4, 2020 1:26am
Leverage is what every trader needs. both new and old. Therefore, it should be no different about leverage for new traders
  • #209
  • Sep 9, 2020 10:20am Sep 9, 2020 10:20am
Quoting split_unit
{quote} Leverage should depend on your stop-loss level (risk), which depends on currency pair volatility and on the trade time horizon. Example 1 If you have a portfolio of $10,000, with a stop loss that's 0.5% percent away from current prices and you are willing to risk 0.5% of your portfolio then, the size of the trade should be: Portfolio = 10,000 Currency pair ABC/XYZ= 1.0000 Stop Loss is at= 0.9950 (0.5% below 1.0000), 50 pips away Amount willing to be risked is = 10,000 * .5% = 50 Amount to be allocated= amount to be risked / Stop Loss %=...
Thank you very much, is perfectly clear.
  • #210
  • Sep 10, 2020 1:07am Sep 10, 2020 1:07am
Quoting split_unit
{quote} Leverage should depend on your stop-loss level (risk), which depends on currency pair volatility and on the trade time horizon. Example 1 If you have a portfolio of $10,000, with a stop loss that's 0.5% percent away from current prices and you are willing to risk 0.5% of your portfolio then, the size of the trade should be: Portfolio = 10,000 Currency pair ABC/XYZ= 1.0000 Stop Loss is at= 0.9950 (0.5% below 1.0000), 50 pips away Amount willing to be risked is = 10,000 * .5% = 50 Amount to be allocated= amount to be risked / Stop Loss %=...
Just reading this. It is very useful, actually.
  • #211
  • Sep 11, 2020 3:02am Sep 11, 2020 3:02am

  1. Leverage, which is the use of borrowed money to invest, is very common in forex trading.
  2. By borrowing money from a broker, investors can trade larger positions in a currency.
  3. However, leverage is a double-edged sword, meaning it can also magnify losses.

  • #212
  • Sep 11, 2020 3:16am Sep 11, 2020 3:16am
The lower the leverage for new traders, the better. Because the lower the leverage, the more secure the trading investment will be. Low leverage protects against over-trading. I always suggest those who join the new Forex trading to use 1: 500 leverage. This leverage is used by many new traders.
  • #213
  • Sep 17, 2020 3:07am Sep 17, 2020 3:07am
Nobody really needs more than 50:1.
Love to talk on Discord: DividendGamer#1324
  • #214
  • Sep 19, 2020 1:25pm Sep 19, 2020 1:25pm
Quoting SamGoi
The lower the leverage for new traders, the better. Because the lower the leverage, the more secure the trading investment will be. Low leverage protects against over-trading. I always suggest those who join the new Forex trading to use 1: 500 leverage. This leverage is used by many new traders.

1:500 is not a low leverage by any means!! Did you mean to say 1:50 and accidentally put an extra 0?
  • #215
  • Sep 21, 2020 1:55am Sep 21, 2020 1:55am
Quoting Varkeer
Nobody really needs more than 50:1.

Well it depends on on a trader's risk preferences. I also like to trade with low leverage but I know some traders who feel comfortable with 1:500 leverage and use it in full.
  • #216
  • Sep 21, 2020 2:45am Sep 21, 2020 2:45am
The lower the leverage in Forex trading, the better. Leverage protects the trading account. In my opinion 1: 500 leverage is much better for new traders. Because it will help keep their account secure.
  • #217
  • Sep 21, 2020 7:24am Sep 21, 2020 7:24am
Quoting MarkFxAnde
What leverage will you advice as a newbie trader to use? Do you think 1:1000 is too high for inexperience trader to use? Because I have been advised against using high leverage but again I thought it broker have provided it why won’t I use it. What you think?
low leverages like 30X 50X etc are the best leverages for newbie. One might find plenty of broker overage high leverages like 500X etc, but they are generally unregulated brokers. If you have just started trading then its better you start your journey with a regulated broker.
  • #218
  • Sep 29, 2020 8:15pm Sep 29, 2020 8:15pm
The lower the leverage for the new trader, the better. Leverage protects the account from overtrades. Less leverage should be used. I suggest new traders use 1: 500 leverage. Because new traders want to profit much faster, they should use less leverage to overcome this attitude.
  • #219
  • Sep 30, 2020 3:50am Sep 30, 2020 3:50am
I think new traders should start with low leverage. It can be from 1:20 to 1:50.
  • #220
  • Sep 30, 2020 4:29am Sep 30, 2020 4:29am
use of leverage depends on each person's method so it's not for anyone ..
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