I'm learning Forex now and I little beat confused with leverage. I understand that it is impossible to trade without it, but when leverage is too big it is risky. As for your question, my 'leverage used per trade' is close to 1: High leverage is not in itself dangerous, if sensibly used, but it's also part of a very common "syndrome" in which gullible beginners with unrealistic expectations habitually get fleeced by scammy "brokers": Well, I seem you need to select trading leverage feature according to your personal trading system and plan!
Personally I am comfortable with small trading leverage feature because, I know money management is one of the most important point of success!
Frankly, now I am working with 1: I think that leverage between 1: Of course it depends on the trader's experience and strategy. High levels of leverage are dangerous for people who are new to this matter, have lack of good discipline and are greedy.
When you combine these, you will most surely have a blown account: I agree with Lexys that most scam brokers offer very high leverage and their clients consider this as an excellent condition Using high leverage might will leading trader being greedy and trading like as gambling, I am also trying to use low leverage like as 1: It will only take us nowhere and make us lose, so got to be extremely careful with how we go about working.
However, I personally prefer leverage upto x. Leverage provides one with the privilege to trade with higher amount without making such big investment i. Using very high leverage might be risky as chances of losses increase especially for the new traders.
Personally I prefer to use small leverages. The higher your leverage, the higher risks are. I m a beginner, so I m afraid to risk a lot. But if you are quite professional trader, I thing, leverage up to 1: It sounds like your getting confused with maximum leverage available on account and the actual leverage used on a trade.
Just because you have an account with a maximum With respect to this, it makes sense for traders to accept the highest maximum leverage available as this reduces the required margin per trade. Just because you have the opportunity to use all Maximum leverage is trivial as you will always adjust your position size to your allowable risk per trade.
Many experienced traders said that safe leverage ratio is 1: So, with small deposit only , we can start trading and maybe also could cover several loss before get margin call. Do not use high leverage and it can make traders greedy and harm their trade. Leverage should be lowest side. In my view, it depends on your risk appetite. If it can increase your profits, it also posses risk for high losses. Say if you are using x leverage in your account and market goes against you with sudden massive spikes, chances are high your account can suffer massive losses as with this high leverage you are taking very high risk.
As for me, I keep myself restricted to x leverage because it lets me trade higher volume with reasonable risk. Again - chances are you are not using I'm baffled by the comments in this thread Maximum available leverage used to calculate margin requirements , such as the choice to open an account with Actual leverage used on a trade, typically far less than the maximum available leverage in point one.
Just because you open an account with Blind leading the blind bro. Dont know about others but leverage is an overdiscussed thread topic because people simply dont know how to use the search button.
If you cant search you certainly cant trade! That s true, but we are talking about what leverege to use while trading. Not about what account to open. I agree, that it s ok to open an account with high available leverage. I don't know about the majority of people here, but I've never seen someone calculate a trade based on what leverage they are using.
So it makes no sense to work out leverage first and then go about finding a trade to fit around leverage limitations. It's just not rational, that's all, think about it. By reading the answers here it's clear that [in most cases, not all] there is a lot of confusion Maybee But thank you for answering, guyes, you shed a little light on my question about leverage.
What is the best leverage? And what is normal leverage for trading? What leverage do you use? As high as you can get, actually. Just don't use it, rather this reduces the required margin per trade.
Big difference between maximum allowed leverage and leverage used. AdbulFani, It sounds like your getting confused with maximum leverage available on account and the actual leverage used on a trade. Hello hasmunfx, In my view, it depends on your risk appetite. This is true - of most forums unfortunately. It's just not rational, that's all, think about it By reading the answers here it's clear that [in most cases, not all] there is a lot of confusionMore...