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What is your favorite leverage?
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Maxwelljoe

Member Since Oct 08, 2020  21 posts Maxwelljoe Nov 11 at 09:39
I don't understand why everyone is going after high leverage.

SofieAndreasen

Member Since Jul 23, 2020  147 posts SofieAndreasen Nov 11 at 13:42
I am using 1:100 in real account. However, I am trying to learn managing high leverage in demo account.

stevenflam

Member Since Oct 07, 2020  20 posts stevenflam Nov 16 at 14:20
@SofieAndreasen i am just not sure whether the leverage differs for a demo or live account?

AliaDare

Member Since Jul 19, 2020  154 posts AliaDare Nov 17 at 01:16
I use 1:50 leverage. This leverage is my favorite.

Gabriel99

Member Since Oct 07, 2019  34 posts Gabriel99 Nov 18 at 12:30
There has to be a reason why regulated brokers like Fxview, ICM, Fxpro are offering low leverage. It is best for us only. Why risk traders are willing to risk so much, i really don't understand, with such security of funds are also at stake since no regulated broker will give high leverage.

togr

Member Since Feb 22, 2011  4836 posts vontogr (togr) Nov 18 at 13:18
Gabriel99 posted:
There has to be a reason why regulated brokers like Fxview, ICM, Fxpro are offering low leverage. It is best for us only. Why risk traders are willing to risk so much, i really don't understand, with such security of funds are also at stake since no regulated broker will give high leverage.


You dont see the bigger picture. Low leverage is dangerous because you need to risk more money to get the same profit.
Lets assume you need to trade 1 lot trades to generate enough profit.
High leverage:
To trade 1 lot EUR USD with leverage 1:500 margin is 100,000/500 = 200 EUR. With stop loss and take profit of 10.0 pips you make either $100 profit or $100 loss. You can trade with 1,000 EUR lets say 3,000 to have some reserve for chain of losing trades. So if broker goes to hell you lost 1,000 EUR.

Low leverage. You need 100,000
To trade 1 lot EUR USD with leverage 1:5 margin is 100,000/5 = 20,000 EUR. With stop loss and take profit of 10.0 pips you make either $100 profit or $100 loss. You has to deposit at least 20,000 EUR lets say 25,000 to have some reserve for chain of losing trades.So if broker goes to hell you lost 25,000 EUR.

stevenflam

Member Since Oct 07, 2020  20 posts stevenflam Nov 19 at 05:34
togr posted:
Gabriel99 posted:
There has to be a reason why regulated brokers like Fxview, ICM, Fxpro are offering low leverage. It is best for us only. Why risk traders are willing to risk so much, i really don't understand, with such security of funds are also at stake since no regulated broker will give high leverage.


You dont see the bigger picture. Low leverage is dangerous because you need to risk more money to get the same profit.
Lets assume you need to trade 1 lot trades to generate enough profit.
High leverage:
To trade 1 lot EUR USD with leverage 1:500 margin is 100,000/500 = 200 EUR. With stop loss and take profit of 10.0 pips you make either $100 profit or $100 loss. You can trade with 1,000 EUR lets say 3,000 to have some reserve for chain of losing trades. So if broker goes to hell you lost 1,000 EUR.

Low leverage. You need 100,000
To trade 1 lot EUR USD with leverage 1:5 margin is 100,000/5 = 20,000 EUR. With stop loss and take profit of 10.0 pips you make either $100 profit or $100 loss. You has to deposit at least 20,000 EUR lets say 25,000 to have some reserve for chain of losing trades.So if broker goes to hell you lost 25,000 EUR.


I too feel that risking all of your own capital isn't the right thing to do. After all there's negative balance protection to protect us traders from throwing all of our own money. So the loss is less compared to the gain in profitable trades.

Tillerfx

Member Since Nov 19, 2020  4 posts Tillerfx Nov 20 at 07:25
I prefer low leverage.

c00l

Member Since Oct 14, 2020  1 posts c00l Nov 20 at 07:47
1:30 is perfect for me

Cordawield

Member Since Nov 03, 2020  16 posts Cordawield Nov 20 at 08:10
Having some experience, I decided to use the leverage of the broker Amarkets, which is 1: 1000 for me, and I personally think it is quite profitable and optimal.

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HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice. Past performance is not indicative of future results.