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What Leverage Do You Use?

August 17, 2009 by

A high leverage is one of the best things of the modern retail Forex trading and it allows making the thousands of dollars on some cent moves in EUR/USD currency pair, even if you have only $10,000 in your trading account. But on the other hand, that high leverage is the reason of the extremely high losses of the inexperienced Forex traders. The margin leverage is a multiplier that plays for you when you win and plays against you when you lose. With a big enough trading account it’s advised not to use the leverage at all, but the vast majority of Forex traders requires a leverage to make some money and they often seek the broker with a highest leverage possible. Personally, I prefer usual 1:100 leverage, which gives a lot of… you know, “leverage”, and makes the risk/reward calculations quite easy. And how about you?

What Margin Leverage Do You Usually Use in Forex Trading?

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If you want to share your thoughts on using leverage in Forex trading, please, feel free to reply using the form below.

2 Responses to “What Leverage Do You Use?”

  1. Phil

    I wouldn’t recommend traders use ANY leverage for the first six months of trading Forex. Even if they’re only on a micro account – it’s much better to perfect and then feel supremely confident with a big leverage than have a couple of losses wipe you out.

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    Andrei Reply:

    In my opinion, it’s good to trade on leverage during your first 6 months of Forex trading, but only on a demo account or a very small real account (which you aren’t afraid of losing). Trading for 6 months without a leverage and then jumping into a leveraged trading is a suicide.

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