1:200 leverage

cardigan posted:
Less leverage less risky but does not mean that your account will be saved. It will be instantly wiped out if you do not pay attention the strategy you used.

hello sir.

is it true that the less leverage i have the more money i need to trade?

thank you in advance.

using high leverage when money management not strong including real trading plan, its a very common mistake that beginners and professional traders most of time do.

the newcomers think always high leverage contains high risk but i dont think so ,
 if there is any risk its all about non-sense planing with zero risk management.

New traders should use low leverage due to risk management factor.

Everyone has to determine for himself what leverage is the more suitable, the option from the Amarkets broker, where the leverage is 1: 1000, was very suitable for me.

1:200 leverage is good for new traders. Don’t use more if you are a newbie.

For a newbie I wouldn't suggest anything above 1:100, given lack of experience and very little knowledge about risk and money management.

SofieAndreasen posted:
New traders should use low leverage due to risk management factor.

Yes. 1:50 will be the best option for the new traders.

It's a very high leverage and there is big risk to lose all your accumulations if you will trade with such a leverage on a daily basis.
Remember that only wise wieghing of risks can help you to gain experience and lead to success. Other things often lead unpleasant consequences actually. Never neglect risk management and money management practices.

Malohuginn posted:
It's a very high leverage and there is big risk to lose all your accumulations if you will trade with such a leverage on a daily basis.
Remember that only wise wieghing of risks can help you to gain experience and lead to success. Other things often lead unpleasant consequences actually. Never neglect risk management and money management practices.

Leverage is the use of borrowed funds to increase one's trading position beyond what would be available from their cash balance alone. ... Forex traders often use leverage to profit from relatively small price changes in currency pairs. Leverage, however, can amplify both profits as well as losses.

Leverage should be relevant to the risk you take rather than the profit you make. I take 1% risk per trade and so that means for a given trade I need a certain amount of margin. If you are planning on only taking a couple of trades at any one time and with planned lot sizes based on what a calculator tells you is a good % risk then once you have required leverage to do so any more is just more margin that will go unused. Just because you have it doesn't mean you HAVE to use it. This is the mistake many make with leverage. Focus on multiplying reward rather than the implication of multiplying risk.

Whatever Leverage settings you use once your risking 2% max per trade .
As another poster said look for better RR on trades

I agree, although I leaned more towards 1:100 leverage as a beginner and even now.

I am looking for a broker, 1-200 leverage minimum, low spreads, also USA based, that's allows ACH, any thoughts?

Hi sir. I am a newbie trader. I use smallest risk that allows me to make money i can use and grow. Key is smallest risk with least capital which allows you more than 1 trade but not too much.

A 1:200 leverage ratio allows traders to control a large position with a relatively small amount of capital. While it offers the potential for significant profits, it also amplifies the risk of substantial losses. Novice traders may find it tempting due to the potential for quick gains, but it requires a thorough understanding of risk management. High leverage magnifies market movements, increasing vulnerability to volatility. It's crucial for traders to exercise caution and use leverage judiciously, ensuring they have a robust trading strategy and adequate risk management practices in place. Ultimately, whether 1:200 leverage is good depends on individual risk tolerance and trading experience.