Reading your query makes me believe that you are well-versed with only one side of leverage which is magnified profits. I think you better don’t overlook the fact that there is another side to this too. Just like magnified profits, you have equal chances of making magnified losses. So, better be careful before you use higher leverage.
What leverage should be good for a newbie to use?
- Thread starter Coner1980
- Start date
In forex trading, you only need an initial margin or a small capital in your account to open large positions. The forex leverage of 100:1 is common in the foreign exchange market, which means that you can trade a value of $100 for every $1 in your account. In other words, with a leverage ratio of 1:100, you can trade 100 times the value in your account.
thanks for your nice post with good information
Exatcly.
Solid advice. Plus if your risking only what you can afford to lose the big leverage is not a big problem.%%
LOL\that's only if you are interested in a wise way. For max thrills, chills + spills that many are interested in, use all the leverage you can, especially when young.
But for a profitable business plan, include your first sentence
Forex trading always involves the risk, choosing high leverage can associate with the end risk, high leverage allows traders to open bigger position size, but it will quickly narrow margin level and when margin level already reaches threshold margin call will be triggered and broker automatically closes one by one order until reach margin level above margin call level threshold.
But if we can control our trades, using high leverage is not a big deal.
But if we can control our trades, using high leverage is not a big deal.
according to our trading experience we the traders generally choose our trading leverage, i usually trade with low leverage ratio even though after having good risk management. because high leverage could be more dangerous.
