Leverage
Feb 24, 2015 at 21:09
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14 Replies
Member Since Feb 24, 2015
1 posts
Feb 24, 2015 at 21:09
Hello, I'm new here. I would like to know what leverage should I use when I open my MT4 account ?
Also how to know the leverage of an autotrade provider in myfxbook ?
Also how to know the leverage of an autotrade provider in myfxbook ?
Feb 25, 2015 at 07:32
Short answer: To open an account use the largest leverage the broker offers. To find out what leverage an autotrade providers uses, or any other system posted on myfxbook, look at the General tab in the info section of the Stats (left side of the window).
Longer answer: Learn what leverage is, what it really means (hint: it's just a credit line your broker offers - the bigger the leverage, the more credit you are able to use), and what are its benefits and dangers. You can start here: https://www.investopedia.com/terms/l/leverage.asp
Longer answer: Learn what leverage is, what it really means (hint: it's just a credit line your broker offers - the bigger the leverage, the more credit you are able to use), and what are its benefits and dangers. You can start here: https://www.investopedia.com/terms/l/leverage.asp
Do. Or do not. There is no try.
Member Since Feb 22, 2011
4862 posts
Feb 25, 2015 at 12:19
8fold posted:@8fold
Short answer: To open an account use the largest leverage the broker offers. To find out what leverage an autotrade providers uses, or any other system posted on myfxbook, look at the General tab in the info section of the Stats (left side of the window).
Longer answer: Learn what leverage is, what it really means (hint: it's just a credit line your broker offers - the bigger the leverage, the more credit you are able to use), and what are its benefits and dangers. You can start here: https://www.investopedia.com/terms/l/leverage.asp
Well said. Users here often confuse leverage with risk management. As you wrote these are 2 different things.
Feb 25, 2015 at 16:42
Leverage in general should be used by beginners only if you intend to trade with less money in your account that you actually have for trading.
Say if you are in a broker that covers any losses beyond margins, and lets say for example that you have 5000 to trade, you could add 1000 to your account and use leverage to trade as if you would have 5K, but not put all that money into the account.
Anyway, going over 5:1 leverage is very hard in long term to keep profit.
Cheers,
Vlad
Say if you are in a broker that covers any losses beyond margins, and lets say for example that you have 5000 to trade, you could add 1000 to your account and use leverage to trade as if you would have 5K, but not put all that money into the account.
Anyway, going over 5:1 leverage is very hard in long term to keep profit.
Cheers,
Vlad
vladrac@
Member Since Feb 04, 2015
12 posts
Feb 26, 2015 at 07:38
the biggest, I use 500:1
Read, Learn, Earn
Feb 26, 2015 at 16:31
KyleBroflovsky posted:
the biggest, I use 500:1
Have you ever use anything bigger than 100:1? What was the result?
Ex: 100 USD in the account , 100:1 = 0.1 lots = 1 USD/pip -> 100 pips = 100% of your account! 100 pips is the average daily move of most of the pairs.
You really have to know what you are doing to enter a trade with a high level such as 100:1, anything beyond this is just plain crazy!
My broker offers 1000:1... so for my 100 USD I can trade (ignoring margins and spread/commissions) 1 lot... with 10pips I have reached 100% of my account!!! pure insanity!!!
vladrac@
Member Since Dec 10, 2014
107 posts
Mar 14, 2015 at 08:11
I am using 500:1 now too - the most comfortable leverage for me.
Let's make a profit)))
forex_trader_43716
Member Since Aug 06, 2011
345 posts
Mar 14, 2015 at 08:15
8fold posted:
Short answer: To open an account use the largest leverage the broker offers. To find out what leverage an autotrade providers uses, or any other system posted on myfxbook, look at the General tab in the info section of the Stats (left side of the window).
Longer answer: Learn what leverage is, what it really means (hint: it's just a credit line your broker offers - the bigger the leverage, the more credit you are able to use), and what are its benefits and dangers. You can start here: https://www.investopedia.com/terms/l/leverage.asp
Nicely put!
Mar 17, 2015 at 08:41
The whole point of trading in Forex is to take advantage of the leverage offered - why would you not? As long as your potential losses on any one trade are what you can handle - many people suggest 1 or 2% but I think 5% is reasonable as your trading account should not contain all the money you have for trading. Personally I think 1-100 or 1-200 is reasonable.
Trading 0.1 lots on a 100$ account is just stupid - it's like putting all your money on your first hand in poker - you would have a very short game...
Trading 0.1 lots on a 100$ account is just stupid - it's like putting all your money on your first hand in poker - you would have a very short game...
Member Since Sep 09, 2014
65 posts
Mar 17, 2015 at 19:28
vladrac posted:KyleBroflovsky posted:
the biggest, I use 500:1
Have you ever use anything bigger than 100:1? What was the result?
Ex: 100 USD in the account , 100:1 = 0.1 lots = 1 USD/pip -> 100 pips = 100% of your account! 100 pips is the average daily move of most of the pairs.
You really have to know what you are doing to enter a trade with a high level such as 100:1, anything beyond this is just plain crazy!
My broker offers 1000:1... so for my 100 USD I can trade (ignoring margins and spread/commissions) 1 lot... with 10pips I have reached 100% of my account!!! pure insanity!!!
there are situations when it's necessary to add positions but 100:1 restricts opportunities of me deposit. Also there is big possibility to lose all your depo if it's some kind of rollback
There can't be enough money
Member Since Dec 10, 2014
107 posts
Mar 25, 2015 at 02:47
kanon103 posted:
1:100 or 1:200 is enough and safe
1:500 is overkilled
Sorry, but I am using 1:500 for a long time and successful in my trading. So IMO every trader has to choose by himself what leverage much comfortable for him. Sorry for mistakes in text, hope you'll understand what I meant.
Let's make a profit)))
Mar 25, 2015 at 03:02
(edited Mar 25, 2015 at 03:03)
VlasovTrend posted:kanon103 posted:
1:100 or 1:200 is enough and safe
1:500 is overkilled
Sorry, but I am using 1:500 for a long time and successful in my trading. So IMO every trader has to choose by himself what leverage much comfortable for him. Sorry for mistakes in text, hope you'll understand what I meant.
i am using 1:500 too. i never needed that much when i trade. that is why i said its overkilled .maybe depending on strategies.
yes. it is about which ever you comfortable with. just let you know that im not against 1:500
overkilled means more than enough if you misunderstood.
Member Since Dec 10, 2014
107 posts
Mar 25, 2015 at 03:05
kanon103 posted:VlasovTrend posted:kanon103 posted:
1:100 or 1:200 is enough and safe
1:500 is overkilled
Sorry, but I am using 1:500 for a long time and successful in my trading. So IMO every trader has to choose by himself what leverage much comfortable for him. Sorry for mistakes in text, hope you'll understand what I meant.
i am using 1:500 too. i never needed that much when i trade. that is why i said its overkilled .maybe depending on strategies.
yes. it is about which ever you comfortable with. just let you know that im not against 1:500
Depending on strategies... agree with this) And I don't think that you're against 1:500)
Let's make a profit)))
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