I have an account with OANDA. What is the maximum leverage with OANDA? I was watching a video, and something strange either in the video or in my understanding of maximum leverage one can get with OANDA.
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Leverage at OANDA
- Thread starter riskfreetrading
- Start date
I just found out in my OANDA account that the maximum leverage is 50. Yet, I just watched a couple of videos earlier today in which a guy shows his OANDA account live and turns 15K to 32K (there are many videos there (look at the one down in which he shows a 30 minute trade)). He must have used a leverage way higher than 50 (probably 4 times as much). So where did he get all that leverage. The link to the videos is below:
Quote from riskfreetrading:
Someone sent me a link to a guy that teaches a forex course. Does anyone know something about this? I watched one of his videos (click link to access the videos) and he sounds british. He says he turned 15k into 22K in 30 minutes in one of the videos showing OANDA screens! I have hard time to believe it, but he has screens showing the balances. He must use a lot of leverage, that is for sure.
He is only using half the 1:50 leverage. Try the units available calculator:
http://fxtrade.oanda.com/tools/fxcalculators/units_available_calculator.shtml
He has 450k units open, I get about 877k units available with the calculator. That's why you should never use so much leverage. As you can see, even 1:25 can easily double (or wipe out!) your account.
edit: just to add, these services are usually fake. In case you were thinking of buying.
http://fxtrade.oanda.com/tools/fxcalculators/units_available_calculator.shtml
He has 450k units open, I get about 877k units available with the calculator. That's why you should never use so much leverage. As you can see, even 1:25 can easily double (or wipe out!) your account.
edit: just to add, these services are usually fake. In case you were thinking of buying.
Quote from TradingWise:
He is only using half the 1:50 leverage. Try the units available calculator:
http://fxtrade.oanda.com/tools/fxcalculators/units_available_calculator.shtml
He has 450k units open, I get about 877k units available with the calculator. That's why you should never use so much leverage. As you can see, even 1:25 can easily double (or wipe out!) your account.
edit: just to add, these services are usually fake. In case you were thinking of buying.
Thanks for your reply. I personnally trade never higher than 1:5 (but I have it set to 1:30). But I saw this guy's account jump from 15K to 22K, and he has that in his video. How did he then fake it? What is amazing is that there are people buying from him.
If someone knows how he faked that video, I am really curious to know (it is the video where he trades EUR/USD). His account goes from 15k to 22k when EUR/USD jumps up, and later his account moves even higher to 30K something. EUR/USD did not move more than a fraction of 1%. Therefore even with a leverage of 1:50 the maximum he could get is 50% return. He was either able to get a higher leverage, or he is a fake. How come his clients do not realize this possible fake? He could be sued if it is a fake.
"edit: just to add, these services are usually fake. In case you were thinking of buying": thanks for the advice. I was tempted to buy, but when I saw that leverage issue, the alarm rang.
I don't think the leverage (or the video) is fake. If you have a 10k account, and trade at 50 leverage, each pip is worth 50 US (http://fxtrade.oanda.com/tools/fxcalculators/profit_calculator.shtml).
If you make 250 pip on this position (the average gain from the video I believe), you gain 12500 US. The reason this service is fake is not because the video is fake, but because he just shows a few trades. I can show you a 3000 pip win on EUR/CZK, but that doesn't tell you anything about my trading performance. The second thing is that you can't see if he is trading a demo or real account. He could have set up this trade in a two demo accounts one each way and choose the one with the profit to create the video.
It's actually not that hard to spot these fake sites; look at the site layout (and the actual information it provides!). Bold headlines every 10 lines and no REAL information about his trading performance.
If you make 250 pip on this position (the average gain from the video I believe), you gain 12500 US. The reason this service is fake is not because the video is fake, but because he just shows a few trades. I can show you a 3000 pip win on EUR/CZK, but that doesn't tell you anything about my trading performance. The second thing is that you can't see if he is trading a demo or real account. He could have set up this trade in a two demo accounts one each way and choose the one with the profit to create the video.
It's actually not that hard to spot these fake sites; look at the site layout (and the actual information it provides!). Bold headlines every 10 lines and no REAL information about his trading performance.