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1:200 leverage

mariaartenia (mariaartenia)
Oct 30 2019 at 12:44
8 posts
1:200? dude it depends on the lot and the technique. Hedging? Hell no. Regular? yes

Never stop learning from strangers.
Roberto21
Dec 21 2019 at 10:02
364 posts
in Fx trading , sometimes leverage bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.  

Michael989
Dec 24 2019 at 11:11
8 posts
How can you guys say that 1:200 is good for newbies? On the contrary, the bigger the leverage you use, the more capital you risk (and also pay more fees). Not to mention, that EU regulated brokers can offer a maximum of 1:30 on major currency pairs.

Landakus
Dec 24 2019 at 19:45
17 posts
For newbie that is extremely high leverage, as without preparation newbie can blow up all money in some minutes. For newvbies it's better to start with 1:20 or even without leverage, just to get used with Forex and trading.

ProfitableRisks (ProfitableRisks)
Dec 25 2019 at 17:10
38 posts
Mohammadi posted:
In my opinion , 1:200 leverage is good for a newbie. Because at these leverage there will be a low risk and average profit that a newbie will be interested to trade in Forex market as well as invest. When a newbie invest in Forex market and have not enough knowledge about leverage , they take high risk . so that leverage is better option to me.


1:200 is standard for me and if not the best, it's also good for traders t are not diciplined

Jonny87
Dec 26 2019 at 19:23
34 posts
leverage is one of the most important tools in forex market. It increases the investment ability. Traders generally choose those brokers which give more leverage than others. So it is a very important to choose a broker which has dynamic and high leverage.

ProfitableRisks (ProfitableRisks)
Dec 26 2019 at 20:22
38 posts
Jonny87 posted:
leverage is one of the most important tools in forex market. It increases the investment ability. Traders generally choose those brokers which give more leverage than others. So it is a very important to choose a broker which has dynamic and high leverage. I choose TP Global FX because of their high leverage which is 1:500. They don't change their ratio. It helps me to make more profit.


This is ok too

Professional4X
Dec 27 2019 at 01:31
1189 posts
Mohammadi posted:
In my opinion , 1:200 leverage is good for a newbie. Because at these leverage there will be a low risk and average profit that a newbie will be interested to trade in Forex market as well as invest. When a newbie invest in Forex market and have not enough knowledge about leverage , they take high risk . so that leverage is better option to me.


1:200 leverage is neither good or bad. It's just leverage.
Leverage DOES NOT indicate the risk level of the account.
Leverage DOES NOT indicate the average profit.

[ Instrument pip values. ]
1.00 Lot size = $10.00 per pip
0.10 Lot size = $1.00 per pip
0.01 Lot size = $0.10 per pip

Account #1 Balance: $1000.00
EUR/USD 0.10 lots with -300 pips
-300 pips X $1.00 = -$300.00 LOSS

Ending balance: $700.00

Account #2 Balance: $1000.00
EUR/USD 0.01 lots with -30 pips
-30 pips X $0.10 = -$3.00 LOSS

Ending balance: $997.00

Additional costs may include spread, commission, swap, and related fees.

Account 1 will experience a catastrophic loss with approximately 3.34 bad trades in a row.
Account 2 will experience a catastrophic loss with approximately 333.34 bad trades in a row.

Low market exposure = low risk
High market exposure = high risk






If it looks too good to be true, it's probably a scam! Let the buyer beware.
Professional4X
Dec 27 2019 at 01:48
1189 posts
Roberto21 posted:
 in Fx trading , sometimes leverage bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.  


FALSE.

Look at these two example trades.

Account #1: EUR/USD 0.10 lots with -300 pips stoploss = $300.00 USD LOSS

Account #2: EUR/USD 0.01 lots with -30 pips stoploss = $3.00 USD LOSS

Risk management limited the loss to $3.00 USD for account #2.






If it looks too good to be true, it's probably a scam! Let the buyer beware.
Professional4X
Dec 27 2019 at 02:13
1189 posts
ProfitableRisks posted:
Mohammadi posted:
In my opinion , 1:200 leverage is good for a newbie. Because at these leverage there will be a low risk and average profit that a newbie will be interested to trade in Forex market as well as invest. When a newbie invest in Forex market and have not enough knowledge about leverage , they take high risk . so that leverage is better option to me.


1:200 is standard for me and if not the best, it's also good for traders t are not diciplined



What may be standard and best for you, DOES NOT mean 1:200 is the standard and best leverage for everyone else.

In the United States retail Forex traders are typically limited to 1:50 leverage.

A retail Forex trader in the UK might be limited to 1:30 leverage.

Elsewhere a retail Forex trader might have 1:1000 maximum leverage available.

Maximum allowed leverage is generally determined by the governmental regulations and financial market restrictions which a brokerage may operate under.

Risk is determined by market exposure. It's basic math.

If it looks too good to be true, it's probably a scam! Let the buyer beware.
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