What leverage you prefer? - page 3

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some friend advice me to use a lower leverage, as the initial balance goes up. some trader with 100k balance would only use 1:50 leverage, even i used to 1:500 leverage but not for over 1000 usd intitial deposit, when go higher said 5000 usd,

I'll used 1:200. low leverage is more like a stealth stop loss level for your order, restrict your active trade (by lost size), as the lower it is the higher margin requirement for each trade.Money Management is key in this so you need to define your risk & calculate the correct position size for your stop-loss.

 

Usual leverage that is considered as a safe leverage is from 1: 7 to 1:9. All the rest is considered as on over leveraging and risky.

Leverages like 1:500 and higher are known as "suicide leverages" among brokers

 

Using low leverage involves less risk and that is what i prefer though the broker i use offers high leverage but it normally attracts high risk and not well managed can lead to huge loss.

 

Within the usage of leveraging, the larger the leveraging the larger the risk a dealer should be prepared to get. Therefore, the degree of encounter effect the amount leveraging a dealer could have the capacity to deal with. thank you

 
geem2000:
Within the usage of leveraging, the larger the leveraging the larger the risk a dealer should be prepared to get. Therefore, the degree of encounter effect the amount leveraging a dealer could have the capacity to deal with. thank you

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I do not think that the dealer has any risk - the trader has (but then I can not understand at least half of what you told in your post)

 

I favor in order to trade having bigger influence although having small loads; influence of 1: 200 with a 0. 01 ton on the great functioning exchanging plan need to allow you to get a reliable profit on the long run. Though there are some few occasions, I enjoy grow our gains with the 1: 500 influence that is the utmost influence offer simply by Prof currency trading in order to trade especially when meters employing our tendency change exchanging technique.

 

I use 1:1000

But I don't trade on full capital. 1:1000 helps me to avoid margin call. The same trade If i do with 1:100 hits the margin very soon. But 1:1000 margin call is enhanced.

1:1000 is dangerous if you trade on full capital or above 50% of your capital. But it is good when you want to use small amount of capital, like 5% of capital.

 

I personally use power 1: 500. The idea get made myself really feel ease with investing and today, i am seeking to maximize of which power. Newbies can also work with 1: 500 whenever they start out investing with bit.

 

Hello,

For setup leverage, I think best leverage for $100 is 1:50 but always use small lot size because small capital is very risky and in order to gain good profit always use small lot size to gain consistent profit in trading.

 

I think just about every one has missed the real issue. How much leverage you use is really irrelevant! The real issue to consider is what you do with the leverage and what money management rules you are using - you need to use the two in tandem. I use leverage of 1:400 but i never risk more than 2% of my capital on any single trade. I also never have more than 3 trades open at any time - better to miss a trade than to over trade! End of the day, its what each trader feels comfortable with and the level of confidence he\she has in their trading system.

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