WIth FXSOL you can change your leverage while in the trade. SO if you are at 100:1 and it moves down and you are in deep you can CHANGE leverage on the FLY and reduce the used margin on your account in one click.
So maybe 100:1 is a good safety setting.
NO NO NO, that is a LIE, high leverage is NOT dangerous! only a fool doesnt use maximum leverage. WHy would I put down 40K on a 200K house if INSTEAD of putting up 20% down IF they will let me put up 0% down, I wouldn't!. The more OPM you use the better off you will be, the faster you will build wealth. The problem is not with AMOUNT of leverage but with IGNORNAT margin management. If you ignorantly manage your margin it matters not what your leverage is at ALL. Once you establish your leverage
you now get a new TRUE amount that iNCLUDES the money you efectively borrowed from your broker. now of that total amount for which you have .25% so for example you put in $250 your .25% and you get 100,000 to trade with. Now you refigure your margin useage percentage BASEeD on the total amount of your money AND your brokers you are trading. If you have now 100,000 you should not trade ever more than 10% ideally you want to be at 1-3% or even 2-5% depending on your tolerated risk. But anytime you are going over 10% of your TOTAL available margin (includes money borrowed from your broker) you are THEN in danger!
Danger comes NOT from high leverage but ignorant margin percentage useage levels!!!
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Originally Posted by 4xStar
Ok, now I found it, thanks.
My leverage is still 100:1, I don't need more for now and it looks like they give me 15 cents per day but when I am short, it looks like they subtract 35 cents. I will have to spend some time figuring all this out. Also the leverage thing, I had always heard the most dangerous part of forex was the use of high leverage. But if it means you are using less of your own money, then ... why dangerous? I guess like anything else, if it is over-used it could extend you too much??
C'mon guppy, you've had your rest, let's head north again. I have exits just below 212.
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