What is your margin in forex trading?

Trading Discussion
1

It is common knowledge that margin (another name leverage) in your trading significiantly impacts on your trading. When you creat you trading account brokers offer you to select your leverage you will trade with.

In this topic I would like to know what is the average value of leverage you use and with what value of leverage traders reach maximum success in their trading.

Thanks in advance.

2

“Margin” depends on “Leverage” but they aren’t the same thing:
MARGIN: the amount of money investors are borrowing to buy stocks, which is often referred to as margin debt.

The greatest the leverage you choose the smallest the margin will be when trading.
“Smart money” trades on 1:1 leverage and deposit huge (:huge for my current personal finances) margins.

3

And don’t get confused with maximum leveraged offered by your broker and that of actual leverage used in a trade. Just because your broker offers leverage of 1:100 on an account it does not mean each trade is using this scale of leverage.

And just for the record, I use 1:11 leverage, but account maximum is 1:50.

4

Depends on the pair that’ being traded.
On a leverage of 1:50(max) std lot
EUR/USD- 3000
GBP/USD-3600
USD/JPY-2000
USD/CAD-2000
AUD/USD-2400

5

Margin" depends on “Leverage” but they aren’t the same thing:
MARGIN: the amount of money investors are borrowing to buy stocks, which is often referred to as margin debt.

6

Hm, I guess leverage is directly proportional to margin - the more is leverage (for example 1:1000) the more is margin (trading credit volume) which you can allow to trade with.

7

So it is better for a broker to set a higher leverage for a trader to make his trading more risky and with a quick end?

8

It’s only risky if you make it risky, usually caused by reduced stop losses, higher percentages risked of account balance etc, all key to increasing leverage used.

9

To make the forex trading system best, there are three main aspects to keep in mind always : the time frames use, trend indicators and confirmation, and money management rules. You can also buy stocks and bonds or you can try something different.