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Need to know the truth

jamesmaxwell52
Feb 05 at 12:39
42个发言
I have been exploring articles and discussions and found that a real ECN broker can’t provide leverage more than 1:100. Is this even correct?

rgakalo
Feb 05 at 13:48
2个发言
They can but some of them may require you to answer some questions before they make a decision to provide you with 1:200 leverage. The reason is they don't want their traders to lose more than what they have in their accounts and this usually only happens with leverage of more than 1:100. In general your assumption is correct, no good broker will give you 1:300 - 1:500 leverage as your loss doesn't go into their pocket and it is always a hassle to get money from clients to cover their negative balance.

AmDiab
Feb 08 at 11:27
718个发言
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.  

jamesmaxwell52
Feb 08 at 13:20
42个发言
rgakalo posted:
They can but some of them may require you to answer some questions before they make a decision to provide you with 1:200 leverage. The reason is they don't want their traders to lose more than what they have in their accounts and this usually only happens with leverage of more than 1:100. In general your assumption is correct, no good broker will give you 1:300 - 1:500 leverage as your loss doesn't go into their pocket and it is always a hassle to get money from clients to cover their negative balance.

Wait!! Isn’t negative balance protection provided by the brokers?? I thought that was a given.

jamesmaxwell52
Feb 08 at 13:23
42个发言
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.  

I completely agree!

williamhayes
Feb 10 at 06:09
38个发言
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.

Rassellkarl
Feb 10 at 10:48
36个发言
This you can say is a high leveraged market where you can put down a deposit of $1000 to trade $10,000. Now this is 100:1 leverage factor. What you need to understand here is that 1 pip loss in a 100:1 ratio is $10. So, if you put 10 mini lots in a trade, you’ll lose 50 pips and your loss will be $500 and not $50.

Gareylinn509
Feb 10 at 13:34
34个发言
williamhayes posted:
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.

I’d say it’s high risk because high leverage magnifies the potential loss that a trader can make. For instance, you as a trader enter with a $1000 trading capital, but with high leverage, you can have the potential to lose $10,000 trading capital.

Marshalsam877
Feb 11 at 08:30
23个发言
williamhayes posted:
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.

78678676 (78678676)
Feb 11 at 11:16
64个发言
ECN brokers can provide you a higher leverage, provided you can qualify as a professional trader.

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