If you opened demo account via MetaTrader platform, you could change your leverage during account opening process. You can just open another demo account and now pick the desired leverage.
What is the pros and cons of using high leverage?
- Thread starter kora_trader
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hey tammy.... look very close at what enivid said in regards to his 'effective' leverage.... the broker supplied leverage is often less important than our applied 'effective' leverage....
our leverage here in the states is maxed at 50:1 .... but there are just as many blown accounts here as there are in offshore accounts offering 400:1....
the safest strategy in forex, at least for me, seems to be limiting myself to less than 5:1 'effective' leverage.... sure, i will make pennies compared to the dollars someone else might make..... but that's ok..... grains of sand add up.....h
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double math(double percent,int pds,double balance)
{
double sum = balance;
for(int i=0;i<pds;i++)
{
sum = sum+(sum*percent);
}
return(sum);
}
There is no ideal leverage, but as a newbie I can recommend you to get higher leverage on a small trading account.
Might still in consideration of risk if use small capital then choose high leverage, if occured loss and mc it's only small money, but eventually each trader will have own responisibility with their option
yes. I think it's good ideal. after trading demo, I opened an account with the deposit only 200$ and use leverage of 1: 300
it's good way to check the real execution of the brokers as well as not losing so much money
or you might go with small account and higher leverage. it's a good way to start trading too/
I like with use high leverage and small capital, and still treat forex as part time business only, as my experience forex still remain risky and about profit and loss is common thing in trading, loss is certainty but profit is possibility
1:500 is proved to be a good leverage for me. not too low nor too high leverage i try to keep always.
high leverage has the potential to enlarge your profits or losses by the same magnitude. The greater the amount of leverage on capital you apply, the higher the risk that you will assume. we should also know that this risk is not necessarily related to margin-based leverage although it can influence it if a trader is not careful.
Taking leverage depends on our trading style too. Many expert traders knew it very well that how to handle leverage with risk and money for getting right trade execution.
Taking risk is always going to be trader's personal choice. Either we take risk or not, we never going to be 100% sure of future movement in market.
Everything has its own pros and cons. So does trading on leverage! Basically leverage gives you an opportunity to boost your trade returns. However, it can also bring fatal losses in case of a wrong trade. Leverage is believed to be a double edged sword in the market. Many believe that leverage can put a trader under higher risk as the magnitude of potential losses increases on account of leverage. Traders with the high leverage get a bigger shot at making the most out of the good trade call. But during the bad trade phase, leverage works against us and eats up significant part of margin.
Daniele, I think this where just zeroing your mind comes in. While you should be cautious, we can also take the risk sometimes. I believe this is the same reason we have all the indicators, the strategies, the managements, the books, forums and the net to help us determine the market before we trade!
Right, Daniele. Leverage is choice of trader. If he can handle than he can take any number of leverage according to his trading work.
Frankly, small trading account with high leverage means; maximum risk. Besides, don’t expect to make any unrealistic profit here; be logical & calculative.
If your trades often bring profit, then take a bigger leverage. Let's say you win two out of three trades, while a series of losses are extremely rare. In this case, you can risk half of the Deposit in one transaction. In other cases, it makes no sense to risk less than 20% of the Deposit. Too small a lot will not allow you to make a normal profit.
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