1:200 leverage

1:200? dude it depends on the lot and the technique. Hedging? Hell no. Regular? yes

How can you guys say that 1:200 is good for newbies? On the contrary, the bigger the leverage you use, the more capital you risk (and also pay more fees). Not to mention, that EU regulated brokers can offer a maximum of 1:30 on major currency pairs.

For newbie that is extremely high leverage, as without preparation newbie can blow up all money in some minutes. For newvbies it's better to start with 1:20 or even without leverage, just to get used with Forex and trading.

Mohammadi posted:
In my opinion , 1:200 leverage is good for a newbie. Because at these leverage there will be a low risk and average profit that a newbie will be interested to trade in Forex market as well as invest. When a newbie invest in Forex market and have not enough knowledge about leverage , they take high risk . so that leverage is better option to me.

1:200 is standard for me and if not the best, it's also good for traders t are not diciplined

Jonny87 posted:
leverage is one of the most important tools in forex market. It increases the investment ability. Traders generally choose those brokers which give more leverage than others. So it is a very important to choose a broker which has dynamic and high leverage. I choose TP Global FX because of their high leverage which is 1:500. They don't change their ratio. It helps me to make more profit.

This is ok too

Mohammadi posted:
In my opinion , 1:200 leverage is good for a newbie. Because at these leverage there will be a low risk and average profit that a newbie will be interested to trade in Forex market as well as invest. When a newbie invest in Forex market and have not enough knowledge about leverage , they take high risk . so that leverage is better option to me.

1:200 leverage is neither good or bad. It's just leverage.
Leverage DOES NOT indicate the risk level of the account.
Leverage DOES NOT indicate the average profit.

[ Instrument pip values. ]
1.00 Lot size = $10.00 per pip
0.10 Lot size = $1.00 per pip
0.01 Lot size = $0.10 per pip

Account #1 Balance: $1000.00
EUR/USD 0.10 lots with -300 pips
-300 pips X $1.00 = -$300.00 LOSS

Ending balance: $700.00

Account #2 Balance: $1000.00
EUR/USD 0.01 lots with -30 pips
-30 pips X $0.10 = -$3.00 LOSS

Ending balance: $997.00

Additional costs may include spread, commission, swap, and related fees.

Account 1 will experience a catastrophic loss with approximately 3.34 bad trades in a row.
Account 2 will experience a catastrophic loss with approximately 333.34 bad trades in a row.

Low market exposure = low risk
High market exposure = high risk

Roberto21 posted:
 in Fx trading , sometimes leverage bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.  

FALSE.

Look at these two example trades.

Account #1: EUR/USD 0.10 lots with -300 pips stoploss = $300.00 USD LOSS

Account #2: EUR/USD 0.01 lots with -30 pips stoploss = $3.00 USD LOSS

Risk management limited the loss to $3.00 USD for account #2.

ProfitableRisks posted:

Mohammadi posted:
In my opinion , 1:200 leverage is good for a newbie. Because at these leverage there will be a low risk and average profit that a newbie will be interested to trade in Forex market as well as invest. When a newbie invest in Forex market and have not enough knowledge about leverage , they take high risk . so that leverage is better option to me.

1:200 is standard for me and if not the best, it's also good for traders t are not diciplined

What may be standard and best for you, DOES NOT mean 1:200 is the standard and best leverage for everyone else.

In the United States retail Forex traders are typically limited to 1:50 leverage.

A retail Forex trader in the UK might be limited to 1:30 leverage.

Elsewhere a retail Forex trader might have 1:1000 maximum leverage available.

Maximum allowed leverage is generally determined by the governmental regulations and financial market restrictions which a brokerage may operate under.

Risk is determined by market exposure. It's basic math.

1:200 leverage is okey and enough for most trades, so there is no reason to seek for higher, as higher leverage may be harmful for your trading, as you can blow up deposits in a moment...

That is just usual average leverage being done cause of you know all that stuff which really onto your mind in average offshore broker and many people like it cause they get really used to it absolutely and possibly no matter what reason is.

Never got to use 200x. Have always traded with regulated brokers like etoro, markets.com, and Plus500, always used max 30x. and I think this is what beginners should start with. 200x is too much.

Jonny87 posted:
leverage is one of the most important tools in forex market. It increases the investment ability. Traders generally choose those brokers which give more leverage than others. So it is a very important to choose a broker which has dynamic and high leverage. I choose TP Global FX because of their high leverage which is 1:500. They don't change their ratio. It helps me to make more profit.

So if they don't change the ratio how it comes it is dynamic?

Everyone, of course, chooses which leverage to use, but it seems to me that they are small, not effective enough.

richard2 posted:
Never got to use 200x. Have always traded with regulated brokers like etoro, markets.com, fxview and Plus500, always used max 30x. and I think this is what beginners should start with. 200x is too much.

Completely agree Richard, 1:200 leverage is way too high, I don't think that retails clients should even have the option to use such enormous leverage. I believe that such high leverage is only offered by off-shore brokers but then again I read this article about a CySEC regulated broker IQ Option, https://tradingbeasts.com/iq-option-review/#Leverage , and found out that the maximum leverage actually depends on where you reside. Meaning that if you live somewhere in the European Economic Area or in the UK, you will be able to use a maximum of 1:30 leverage but if you are based in some African or Asian country, you will be able to use much higher leverage. I am not sure if that's a good thing (I am leaning towards no), but that's the practice of even regulated brokers.

I think that is bit too high. It is probably for the best to trade in lower level to avoid the loss.

Personally, it seems to me that this is a very small leverage of his community, I see the point in using it.

i tried to open a real account in one broker some time ago but it offered me a leverage 1:30. do i need have a big balance for this leverage? right?
1: 200 may be a good leverage but i thought to start with min 1: 500. what can you say about it?

1:200 leverage is not that bad for beginners.

high leverage ratio maximum time contains high risk, i think without stupid there is no one who can avoid it. in spite of having most powerful analyzing trade management there is a chance to get loss when using high leverage.