how to choose leverage ? | Forex Factory

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how to choose leverage ?

  • #1
  • First Post: Oct 18, 2008 9:35am Oct 18, 2008 9:35am
my broker offered 1:200 leverage

also offered up to 1:400 on request

spreads is same for both.

which one better ?
  • #2
  • Oct 18, 2008 12:17pm Oct 18, 2008 12:17pm
400:1 because it uses less margin. Don't mix up leverage offered by the broker (which is not leverage but margin requirements) and the leverage you really use. Personally I don't use more than 5:1...
  • #3
  • Last Post: Oct 18, 2008 12:34pm Oct 18, 2008 12:34pm
As long as you have enough fund... leverage should not come into play too much... though though lower the better... prevents you from losing your money quickly.

200 is more than enough... just make sure you are not trading with low equity and have good money MM so even with 200 leverage you do not get a margin call even with losses on the bounce.

Regards,
Vip
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