To Tar and Kibescorp,
I dont want to interrupt your dialogue, but an easy way to understand how your trading is affected by a reduction in leverage is to play with your Demo account.
Place a trade and make note of the margin required and the Margin Level.
Now place another trade, again noting the margin required and the Margin Level.
As you continue to add trades, margin goes up and Margin Level goes down until a margin call is issued. In going through this exercise, you can fully understand how leverage works.
Then set up a spread sheet and work out how many trades (or lots) you can enter before you exhaust margin level for 100:1 and 10:1 with the same Account Balance. 10:1 severely restricts your ability to make good money in forex, and turns the forex market into something with expectations more in line with what is available in the stock market.
If you are a serious trader, who has come to depend on your forex trading to provide your primary source of income, then understand that it will no longer be your primary source of income if this 10:1 leverage goes through.
I dont want to interrupt your dialogue, but an easy way to understand how your trading is affected by a reduction in leverage is to play with your Demo account.
Place a trade and make note of the margin required and the Margin Level.
Now place another trade, again noting the margin required and the Margin Level.
As you continue to add trades, margin goes up and Margin Level goes down until a margin call is issued. In going through this exercise, you can fully understand how leverage works.
Then set up a spread sheet and work out how many trades (or lots) you can enter before you exhaust margin level for 100:1 and 10:1 with the same Account Balance. 10:1 severely restricts your ability to make good money in forex, and turns the forex market into something with expectations more in line with what is available in the stock market.
If you are a serious trader, who has come to depend on your forex trading to provide your primary source of income, then understand that it will no longer be your primary source of income if this 10:1 leverage goes through.