Trading is not just about tools and measurements. It's a lot about understanding the crowd mentality to work with your account in a way that you can minimise your losses. So, while determining the right position size, you better consider your risk tolerance and the size of the account.
Choosing trade size and leverage to use in forex relies upon the capital in your account and trading experience. It relies upon your position measuring as well. A demo account can help you if you aren't sure about what you are doing. Popular FX trading sites offer demo accounts that can help decide the right path through practice with virtual money.
Leverage can do wonders to your trading if used mindfully. Although fxview offers leverage upto 500x but still I prefer using upto 200x. Better use it carefully, you'll be risking a lot the higher you go. also, best if the broker has negative balance protection.
I honestly don' think anything north of 1:500 is every needed. If used correctly and with caution it can be very useful but most use it to practice horrific risk management and get slapped for doing so.
If you can't spot the liquidity then you are the liquidity.
The higher the leverage the better but you have to follow proper risk management. I don't see the point of using lower leverage because the lower it is, the lower is the number of trades you can open at the same time. With a swing trader like me and trading majors and minors, I have a couple of trades open simultaneously.
Learn proper risk management. Once you do, leverage won't really matter.
The majority say that the ideal forex leverage ratio is between 1:100 - 1:200. But in my opinion, 1:100 leverage is the perfect leverage because it means that with $500 in the account, you have credit funds of $50,000 that are offered by the broker to open trades.
Best leverage is the highest leverage offered by your broker. It allows you to avoid getting any margin calls and lets you open as many trades as your margin permits. Of course, capital and risk management should be followed every single time. And if you do, leverage actually won't matter because you will always have a specific risk amount on any single trade.
8christianpaul8 posted: Best leverage is the highest leverage offered by your broker. It allows you to avoid getting any margin calls and lets you open as many trades as your margin permits. Of course, capital and risk management should be followed every single time. And if you do, leverage actually won't matter because you will always have a specific risk amount on any single trade.
this comment is as flaw as many amateurs think.... Leverage is more than that, you almost presume everyone is rational
I'm pointing the right thing. Risk management is more important that your account leverage. Regardless of the leverage, you always want to know the risks on every trade you take. Amateur like you think leverage is bad but it's not or else, we will be earning too little for every trade we make.
As for leverages, I can only recommend to stay away of the idea to trade with leverages until you gain enough experience in trading activity. It's a very dangerous thing and sometimes it can be disastrous for your deposit and funds. I think that those traders who want to start trading with leverages must remember one thing. Never use leverages without any idea of how do they work, because they can easily destroy your funds and you will accuse trading of it, while the blame is on you. So, think twice before starting trading with leverages and always try to choose the lowest leverages which are provided by your broker.
HIGH RISK WARNING: Valutahandel innebär en hög risknivå som kanske inte är lämplig för alla investerare.
Hävstångseffekten skapar ytterligare risker och förlustexponering. Innan du bestämmer dig för att handla med utländsk valuta bör du noga överväga dina investeringsmål, din erfarenhetsnivå och din risktolerans.
Du kan förlora en del av eller hela din ursprungliga investering. Investera inte pengar som du inte har råd att förlora. Utbilda dig om de risker som är förknippade med valutahandel och sök råd från en oberoende finansiell eller skatterådgivare om du har några frågor.
Alla uppgifter och all information tillhandahålls endast i informationssyfte och är inte avsedda för handelsändamål eller rådgivning.
Tidigare resultat är inte en indikation på framtida resultat.