Leverage

What is the recommended leverage for small accounts?

1:30 esma

It depends on what market you are trading. In crypto there are some restrictions on leverage issued by regulators.

1:500 should be the maximum. Leverage only amplify your trading, it doesn't make you a better trader.

small account for fx EA

it depends on your trading condition , need to explain more about .

You should stick with 1:100 or go as high as 1:200 in the beginning. This is the safest way of using leverage for trading.

Leverage is a double edged sword it magnifies the risk. The greater the amount of leverage on your capital the higher the risk that you will have therefore for small account use 1:30 leverage only.

mikehussy332 posted:
You should stick with 1:100 or go as high as 1:200 in the beginning. This is the safest way of using leverage for trading.

I wouldn't say 1:100 is safest. That is very dangerous, even for the well experienced traders as well.
1:30 from that first reply is perfect, even for the experienced traders.
Small accounts can have 10x leverage as maximum, to me.

'Leverage is an advantage for traders, but for beginner and traders who do not take risk find leverage as a draw because they worry that higher leverage means higher loss.

But looking at it positively, the higher the leverage, the lower the capital invested and the higher the profit if you have a successful trade.

high leverage means high risk , its not true exactly, if there is any risk it is complete with nonsense planning or zero risk management, nothing without it.

'Leverage is based on the trader's choice. The higher the leverage, the higher the profit, but the risk is also higher.

Professional traders prefer using higher leverage because they have the capital to balance the loss. Still, it is best for beginners to use lower leverage until they gain enough experience in trading.'

If you are a beginner, I advise trading with lower leverage because using higher leverage during beginner stage could bring in more loss than profit.

Let me copy what I have said on the other thread.

I think I have already explained this before that the leverage doesn't matter unless you trade a big size or a lot of trades that will affect the margin % on your account. When using proper position sizing, you only need to know how much are you willing to risk per trade and the total pips from the entry price to the stoploss price. Leverage doesn't matter at all. If let's say you wanted to open a trade that will be a 50-pip stoploss and you are willing to lose 500 dollars, then you can open a lot size of 10 dollars per pip or 1 lot size on a standard account. Regardless if you use a leverage of 1:1, 1:30, 1:50, 1:100 or 1:3000, the risked amount of 500 dollars on that trade will still remain the same. Please do not mislead newbie traders. Anyone who knows how to properly set the correct sizing on each trade, knows this.

Leverage just gives us buying power. It's the skills that need the most to be profitable in scalping. A trader needs to understand the market very well to become successful in scalping.

1:10 or 1:20 seems to be the safest if you want to risk less. Good luck to you.

I prefer 1:200 on most trades. It is simple and safe, works for me.

1:30 is the safest leverage if you don’t want to risk so much. Although it also depends on instruments which you are trading.

fasfolds posted:
I prefer 1:200 on most trades. It is simple and safe, works for me.

Adjust the leverage according to your risk tolerance. Newbies shouldn’t take high leverage.