in my view, high leverage is very risky on one side if it can lead to doubled profits it can lead to doubled losses as well so i avoid using high leverages
what is your leverage when you trade ?
- Thread starter homi
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Low leverage also low risk, but high leverage is useful for trader that only have small capital because if they want to open any lot size only need smallest margin requirement, but as trader also they need to always keep discipline with risk management although using high leverage.
I now prefer to leverage small, and when I think after all this time. safe trading is trading with lower leverage.
I use the leverage of 1: 100 and 1: 200 in the other account.
I use the leverage of 1: 100 and 1: 200 in the other account.
It depend on every traders own capital. The best leverage is come form the having experiences from the trading. I think leverage should be small like 1:100.
if you use a lot 1: 100 typically capital to be used we can only open one position. So, I thought to zoom into 1; 200. so I still have a chance to be able to open up a position on certain conditions.
To have such leverage with your account, you need find such broker also who provides leverage according to your requirements and also trusteable having good reputation in market.
Agree, small capital with high leverage is good for beginners. After time goes, you will learn how to select good leverage according to your trading style.
hey Lukas..... that's a good plan... most people really use far less leverage than their account allows.... here in the states our max leverage allowed is 50:1..... but quite often my effective leverage is 1:1 or less per trade....
high leverage is a hard horse to ride..... usually it only speeds up the inevitable....h
Low leverage need higher margin requirement to open one lot size, might small capital will can't open one lot size because not enough margin requirement, trader that use low leverage might already use huge capital while retail trader only start with low capital might still as hobby and fear to losing big money
hey radex.... to me, low capital would be perhaps 200$......
the margin required to open 1 standard lot usdjpy trade is 2000$ here.... 200$ for a mini lot, or a 0.1 sized trade..... 20$ for a 0.01 lot trade..... so obviously neither a standard nor a mini lot could be opened......
what amount would represent low capital to you.... and what % per month would you think was reasonably possible to make with that low capital account..... thanks....h
200$ already good amount to start, if using cent account for learning still comfortable in my view, might not all broker offer cent account, in my view low capital is we use money that afford to lose, might funny for you if I often start with 10$ only because might you already as profesional trader with big capital
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