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What trade size and leverage to use in forex?

Mitchelsantner
Jan 08 at 09:42
34 poster
For me it’s fxview and forex4you that works. Started with the cent account of forex4you and eventually invested the profits out of it on fxview. Wanted to try a different ecn environment and platform (mt5).

8christianpaul8 (8christianpaul8)
Jan 08 at 09:44
85 poster
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.

Trading is a marathon, not a sprint.
Jamespaul
Jan 11 at 10:14
24 poster
8christianpaul8 posted:
XM is good. XM is my very first broker. What they say is true that no requotes. Though I blew a few accounts with them due to my own mistakes as a newbie. I switched to RoboForex because of the free VPS and good profit share bonus. When I get more capital to open a new account, I will open an account with XM again.

With XM you don’t actually need a big trading balance to start trading. You can even open an account with them now. I made mine with an initial deposit of just $500. You actually only need $5 with them.

8christianpaul8 (8christianpaul8)
Jan 11 at 10:16
85 poster
Jamespaul posted:
8christianpaul8 posted:
XM is good. XM is my very first broker. What they say is true that no requotes. Though I blew a few accounts with them due to my own mistakes as a newbie. I switched to RoboForex because of the free VPS and good profit share bonus. When I get more capital to open a new account, I will open an account with XM again.

With XM you don’t actually need a big trading balance to start trading. You can even open an account with them now. I made mine with an initial deposit of just $500. You actually only need $5 with them.

I know but I prefer something at least around 1k dollars like what I use on my 2 accounts.

Trading is a marathon, not a sprint.
Gareylinn509
Jan 11 at 11:50
34 poster
ele020 posted:
Kylealker87 posted:
Nano/micro/mini lot with less risks. Looking for suggestions!

Low leverages always, high leverage clearly means more gamble. If you can afford to lose more, then for sure go for high leverage, but if you are a retail trader, 50X is more than enough.

I agree, and if you ask me even 50x is a lot to use. Can’t afford to lose everything in a single stroke.

Kylealker87
Jan 12 at 13:21
34 poster
8christianpaul8 posted:
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.

What you are saying makes complete sense, a different perspective of looking at leverage for sure. The % of profit/loss on a winning/losing trade would be the same.

8christianpaul8 (8christianpaul8)
Jan 12 at 13:57
85 poster
Gareylinn509 posted:
ele020 posted:
Kylealker87 posted:
Nano/micro/mini lot with less risks. Looking for suggestions!

Low leverages always, high leverage clearly means more gamble. If you can afford to lose more, then for sure go for high leverage, but if you are a retail trader, 50X is more than enough.

I agree, and if you ask me even 50x is a lot to use. Can’t afford to lose everything in a single stroke.

Just risk 1% or less of your account capital in a single trade. If you're so unlucky, 100 loses in a row can wipe out your account. Of course, you still need a strategy that has a positive expectation so you can come out green after all of your trades. Best of luck in trading!

Trading is a marathon, not a sprint.
8christianpaul8 (8christianpaul8)
Jan 12 at 13:58
85 poster
Kylealker87 posted:
8christianpaul8 posted:
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.

What you are saying makes complete sense, a different perspective of looking at leverage for sure. The % of profit/loss on a winning/losing trade would be the same.

Thank you! That's a simple way of seeing it.

Trading is a marathon, not a sprint.
marktaylor
Jan 13 at 11:57
21 poster
Mitchelsantner posted:
For me it’s fxview and forex4you that works. Started with the cent account of forex4you and eventually invested the profits out of it on fxview. Wanted to try a different ecn environment and platform (mt5).

And also forex4you gives fixed spreads, that was my reason for switching to forex.com. A good broker otherwise.

Mitchelsantner
Jan 13 at 11:57
34 poster
marktaylor posted:
Mitchelsantner posted:
For me it’s fxview and forex4you that works. Started with the cent account of forex4you and eventually invested the profits out of it on fxview. Wanted to try a different ecn environment and platform (mt5).

And also forex4you gives fixed spreads, that was my reason for switching to forex.com. A good broker otherwise.

True! With so many cent account holders on this platform, the transaction volume with them is something. Guess it's their credibility over last 15 odd years.

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