What is your favorite leverage?

I don't understand why everyone is going after high leverage.

I am using 1:100 in real account. However, I am trying to learn managing high leverage in demo account.

@SofieAndreasen i am just not sure whether the leverage differs for a demo or live account?

I use 1:50 leverage. This leverage is my favorite.

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.

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.

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.

I prefer low leverage.

1:30 is perfect for me