Can anyone help me with leverage?
i am new to trading.. i have been using demo for a awhile.. and have made a system..
i wanna open an account? in NF but i do not understand, how much leverage should i get?
is leverage changeable? in NFIf you feel that you have been using a demo long enough, and you have a good system, go ahead and open an account! Leverage is up to you, but for a beginner i wouldn't go higher than 200:1 on a MINI account... but thats me, maybe you feel your system is a 'guaranteed' winner? And to answer the question if leverage is changeable, i believe it is, but ask them first to make sure... Infact ask FXCleaner he loves NF, he should be able to answer that last one.
The leverage is changeable at NF. You can even change it after you open the account if you wish. 1:200 is a good starting point for a beginner.
The thing you really should be worrying about is your starting capital. If you are thinking anything less than US$2000 is ok on NF, maybe you should be thinking of using InterbankFX so you can use micro lots instead. Having said that, the margin requirement is very generous on NF and a trade that might lead to a margin call on ibfx, wouldn't on NF. They just let you go until you totally wipe out the account 
The higher the leverage, the faster your account will be cleaned up. It is a matter of simple risk calculation. Don't forget that you have a "lower limit" of 0 that is reached in a matter of pips fractions when leverage is very high. Looking just at possible gain without considering that account deposit must be very high in order to cover possible losses on a high leveraged account is the usual mistake done by many
hey guys ,
May be it is a repeated question , but i think leverage in trading is very important .
I want to know what is your leverage while trading ?
And what is your opinion about high leverage and low leverage ?
Noone is really quite answering the question "what is leverage".
Let's say your account balance is $1000. You open a micro lot trade 0.01.
1 full standard lot of eurusd represents $100,000 of base currency so a micro lot is $1000 so in this case you are buying $1000 of euros and you have $1000 in your account so you are not using any leverage.
To buy 2 micro lots which is $2000 worth of euros you would need to use a leverage of 2 to 1 because you only have $1000 in your account.
If your leverage is set at, say, 500 to 1 then with $1000 you would be able to buy $500,000 of euros or 5 standard lots.
This is obviously far too much because at $50 per pip you only need a 20 pip move against you to wipe out your whole account.
Let's say you are risking 1% of your account on each trade which for the most part you should do then 1% of $1000 is $10, if you're risking 100 pips per trade then you want to trade at 10c per pip which is 1 micro lot. So in most instances with a sensible risk level then you are not using any leverage at all.
Where you will need to use leverage is when you open positions on other different pairs at the same time because every trade you place uses margin from your account. If you have your account set at no leverage and you have already bought a micro lot in another pair then you have no available margin with which to open another trade.
At the end of the day it doesn't matter what leverage you set your account at. If you use too much leverage because it is available then you risk your account. If you set your leverage at 1000 to 1 but never use much of it then it is the same as setting it to 5 to 1, it makes no difference.
I recommend setting it to about 200 to 1. That way you won't be able to open too many trades at the same time but will have the flexibility to open multiple small trades on different pairs should you need/want to.
I hope this is clear enough and helps?
I agree about the risk part
But since the minimal tradeable lot size is also controlled by the broker you first must calculate what is the deposit that you have to make in order to be able to trade that kinds of expected risk (expected by you as a trader). And since people almost always make deposits too small (you even can not open accounts with that kind of leverage with "too much money") it is obvious what are those kind of leverages invented for - picking the "pocket money" from people that can not afford normal leverage
Noone is really quite answering the question "what is leverage".
Let's say your account balance is $1000. You open a micro lot trade 0.01.
1 full standard lot of eurusd represents $100,000 of base currency so a micro lot is $1000 so in this case you are buying $1000 of euros and you have $1000 in your account so you are not using any leverage.
To buy 2 micro lots which is $2000 worth of euros you would need to use a leverage of 2 to 1 because you only have $1000 in your account.
If your leverage is set at, say, 500 to 1 then with $1000 you would be able to buy $500,000 of euros or 5 standard lots.
This is obviously far too much because at $50 per pip you only need a 20 pip move against you to wipe out your whole account.
Let's say you are risking 1% of your account on each trade which for the most part you should do then 1% of $1000 is $10, if you're risking 100 pips per trade then you want to trade at 10c per pip which is 1 micro lot. So in most instances with a sensible risk level then you are not using any leverage at all.
Where you will need to use leverage is when you open positions on other different pairs at the same time because every trade you place uses margin from your account. If you have your account set at no leverage and you have already bought a micro lot in another pair then you have no available margin with which to open another trade.
At the end of the day it doesn't matter what leverage you set your account at. If you use too much leverage because it is available then you risk your account. If you set your leverage at 1000 to 1 but never use much of it then it is the same as setting it to 5 to 1, it makes no difference.
I recommend setting it to about 200 to 1. That way you won't be able to open too many trades at the same time but will have the flexibility to open multiple small trades on different pairs should you need/want to.
I hope this is clear enough and helps?you have to be careful
first, winning money is hard
so leverage work against you as retail customer trader
did you do well in casino alike demo trading -- how long is your duration of your usual exit / entry
tell us more, maybe someone will shed some light to you (from the experience giant shoulder, then you can learn something)
there is micro lot 0.1 multiples too, beside leverage -- you have to know that !!
Nf?
If you feel that you have been using a demo long enough, and you have a good system, go ahead and open an account! Leverage is up to you, but for a beginner i wouldn't go higher than 200:1 on a MINI account... but thats me, maybe you feel your system is a 'guaranteed' winner? And to answer the question if leverage is changeable, i believe it is, but ask them first to make sure... Infact ask FXCleaner he loves NF, he should be able to answer that last one.
What is NF?
regards
TCT
I agree about the risk part But since the minimal tradeable lot size is also controlled by the broker you first must calculate what is the deposit that you have to make in order to be able to trade that kinds of expected risk (expected by you as a trader). And since people almost always make deposits too small (you even can not open accounts with that kind of leverage with "too much money") it is obvious what are those kind of leverages invented for - picking the "pocket money" from people that can not afford normal leverage
Well without a doubt the biggest problem for a trader looking to deposit a small amount of money to trade with is that they are forced to trade at a much larger % of account than they actually should. From my example above you can see that you need at least $1000 to take a 1% trade over 100 pips. I'm a long term trader and 100 pips is not a large stop loss to me, I often use 200 or 300 pip stops, so unless you're going to use a strategy that can get away with smaller stops (generally trading intraday which on it's own is a bad idea for new traders) then you will have to risk a larger % per trade.
The best bet is to keep saving until you can fund an account with at least $1000 and preferably $2000. Also start on daily charts, if you can get it right on dailies then intraday will become easier as you go along.
Found one very nice quote regarding high leverages :
If you are wondering why brokersoffer leverage of up to 500:1 the answer is simple. It entices traders to invest $100 (or so) and try to gamble their way to profits. A micro lots costs $1000 a mini lot $10,000 in a pair such as the EUR/USD, so opening an account for less than $1000 means the trader needs leverage just to buy the smallest increment available. And since most new traders come to forex market with illusions or grandeur it is likely they will risk far more than 1% of their account, and leverage provides a way to do that. Insanely high leverage allows people to swing for the fences in the hopes of a hitting a couple winners, but it rarely happens.
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
i am new to trading.. i have been using demo for a awhile.. and have made a system..
i wanna open an account? in NF but i do not understand, how much leverage should i get?
is leverage changeable? in NF