What is your favorite leverage?

I don't understand why everyone is going after high leverage.

I am using 1:100 in real account. However, I am trying to learn managing high leverage in demo account.

@SofieAndreasen i am just not sure whether the leverage differs for a demo or live account?

I use 1:50 leverage. This leverage is my favorite.

There has to be a reason why regulated brokers like Fxview, ICM, Fxpro are offering low leverage. It is best for us only. Why risk traders are willing to risk so much, i really don't understand, with such security of funds are also at stake since no regulated broker will give high leverage.

Gabriel99 posted:
There has to be a reason why regulated brokers like Fxview, ICM, Fxpro are offering low leverage. It is best for us only. Why risk traders are willing to risk so much, i really don't understand, with such security of funds are also at stake since no regulated broker will give high leverage.

You dont see the bigger picture. Low leverage is dangerous because you need to risk more money to get the same profit.
Lets assume you need to trade 1 lot trades to generate enough profit.
High leverage:
To trade 1 lot EUR USD with leverage 1:500 margin is 100,000/500 = 200 EUR. With stop loss and take profit of 10.0 pips you make either $100 profit or $100 loss. You can trade with 1,000 EUR lets say 3,000 to have some reserve for chain of losing trades. So if broker goes to hell you lost 1,000 EUR.

Low leverage. You need 100,000
To trade 1 lot EUR USD with leverage 1:5 margin is 100,000/5 = 20,000 EUR. With stop loss and take profit of 10.0 pips you make either $100 profit or $100 loss. You has to deposit at least 20,000 EUR lets say 25,000 to have some reserve for chain of losing trades.So if broker goes to hell you lost 25,000 EUR.

togr posted:

Gabriel99 posted:
There has to be a reason why regulated brokers like Fxview, ICM, Fxpro are offering low leverage. It is best for us only. Why risk traders are willing to risk so much, i really don't understand, with such security of funds are also at stake since no regulated broker will give high leverage.

You dont see the bigger picture. Low leverage is dangerous because you need to risk more money to get the same profit.
Lets assume you need to trade 1 lot trades to generate enough profit.
High leverage:
To trade 1 lot EUR USD with leverage 1:500 margin is 100,000/500 = 200 EUR. With stop loss and take profit of 10.0 pips you make either $100 profit or $100 loss. You can trade with 1,000 EUR lets say 3,000 to have some reserve for chain of losing trades. So if broker goes to hell you lost 1,000 EUR.

Low leverage. You need 100,000
To trade 1 lot EUR USD with leverage 1:5 margin is 100,000/5 = 20,000 EUR. With stop loss and take profit of 10.0 pips you make either $100 profit or $100 loss. You has to deposit at least 20,000 EUR lets say 25,000 to have some reserve for chain of losing trades.So if broker goes to hell you lost 25,000 EUR.

I too feel that risking all of your own capital isn't the right thing to do. After all there's negative balance protection to protect us traders from throwing all of our own money. So the loss is less compared to the gain in profitable trades.

I prefer low leverage.

1:30 is perfect for me

Having some experience, I decided to use the leverage of the broker Amarkets, which is 1: 1000 for me, and I personally think it is quite profitable and optimal.

1:50 is my favorite leverage. This leverage helps me a lot.

which leverage is best it depends on your trading approach , if you have most powerful analyzing trade knowledge and experience with a wide range of money management , then you can bring good amount of profit by using at any leverage , i hope you got the point , good luck 

In Fx trading , leverage is useful for trader , especially if trader start with small balance hence with leverage it will giving opportunity to making transaction on Fx market , now some broker offer high leverage until 1:1000 but so far I am only use leverage 1:400 as maximum.

Tradelist45 posted:
which leverage is best it depends on your trading approach , if you have most powerful analyzing trade knowledge and experience with a wide range of money management , then you can bring good amount of profit by using at any leverage , i hope you got the point , good luck 

my money management rules involve use of stop loss and a rigid reward to risk ratio and a premeditated strategy. Is there anything I'm missing? Thanks

Roberto21 posted:
In Fx trading , leverage is useful for trader , especially if trader start with small balance hence with leverage it will giving opportunity to making transaction on Fx market , now some broker offer high leverage until 1:1000 but so far I am only use leverage 1:400 as maximum.

1:400 is something which a lot many traders will find high as well. It's subjective I guess. I totally agree with you on being able to trade good volume through leverage though. Leverage is in fact how trading has become a possibility for so many small timers. Was only the privilege of the elite before.

I don’t understand why everyone is so interested in using high leverage. I have not seen people for whom leverage worked always.

c00l posted:
1:30 is perfect for me

High five. Using 1:30 with fxview atm. Low leverage works for me.

Hillartrading posted:

c00l posted:
1:30 is perfect for me

High five. Using 1:30 with fxview atm. Low leverage works for me.

I think it is too low for small capital trader. But it safe. You cannot open multiple trade otherwise your trade will be closed due to margin.

LyudmilLukanov posted:

Hillartrading posted:

c00l posted:
1:30 is perfect for me

High five. Using 1:30 with fxview atm. Low leverage works for me.

I think it is too low for small capital trader. But it safe. You cannot open multiple trade otherwise your trade will be closed due to margin.

I honestly don't believe in opening multiple trades at same time. Can get too stressful and at this point for me, even too much to keep a track on.