Is 400:1 leverage better than 100:1? 25 replies
Inquiry of 400:1 leverage method 11 replies
DislikedI think the term leverage is over used and over emphasized. When I place a trade I only care how much each pip is costing me and how that translates to % of account balance.
Oanda, for example uses a diferent way to calculate pip cost and I never took the time to learn it. I believe they have one of the lowest cost per pip of any broker and many satisfied clients.Ignored
DislikedNorth Finance demo platform has been frozen for more than 45 minutes now.Ignored
Disliked500:1? I hope anyone attempting to use any leverage beyond 1:1 has a strong grounding in mathematics.
At 500:1, a 0.2% move against you results in a 100% loss of account equity, i.e. total blowup. A 0.2% move in EUR/USD is 29 pips. Heck, a 1 pip move would be a 3.5% swing in your account equity. Assuming a 3-pip spread (the usual at these bucketshops), you'll be down 10% the moment you enter the trade. You'll last longer in Vegas...Ignored
Disliked500:1? I hope anyone attempting to use any leverage beyond 1:1 has a strong grounding in mathematics.Ignored