russellgutierrez posted: Do you really want to use this much leverage, even though most of the reliable brokers can offer you leverage ranging from 1:2 to 1:1,000 depending on the investment and requirement of the traders. There are different leverage levels that are ideal for traders with diverse knowledge and experience. So, when you talk to your broker, consider your individual needs and strategy. But, if you’re seriously planning this much leverage, do work on your strategy once.
Right and even though ECN brokers offer more than 100:1 leverage, the best deal would be to have a broker like Fxview, FXVM, or eToro that offers various leverage ratios like 50:1, 100:1, 200:1, and 400:1. I have traded with them and could change the leverage ratio on their website’s dashboard.
AmDiab posted: risk is everywhere in Forex its a very common thing , there is no one who can deny but if you have proper money and risk management then within a very short time you can bring good amount of profit from here.
Agreed and that’s why 1:3 risk reward ratio is preferred. I also believe trading on leverage is a safe bet. Correct me if I’m wrong.
Let me try explaining it to you in numbers. I agree with @gareylinn509. If you decide to use hgh leverage, say 50:1, and purchase 5 standard lots, each one pip movement will cost you $50. In case the trader goes against the investor by 50 pips, the investor would end up losing $2500 which will be 25% of the total $10,000 trading account.
I believe selecting the right leverage is something that entirely depends on the trader’s experience, his comfort while operating currencies, and risk tolerance level. Beginners should however familiarize themselves with the jargons and build some experience in keeping small positions, using trailing stops, and restricting the capital amount for each position.
Have to agree with this. Choosing the right level of leverage entirely depends upon the trader’s risk taking capability. If a trader is more risk tolerant, he will surely go for high leverage.
Yes there are some compliance that have to be followed by forex brokers. But choosing one of the brokers is a very important task. I would recommend that shortlist some of the brokers and make comparisons between them.
Markwoods posted: Well, I have been using an ECN broker and I can tell you that I haven’t faced such issues with them so far.
I can second that since I’ve been using XM and Fxview’s ECN too. The spreads are tight and the leverage is also fine. I try to keep the leverage low but then for some particular trades, it is got to be high. I mean if you’re not risking much, you won’t earn more profits, right?
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.