Yo guys, i search and read buch of topics and forums but i cant figure out what is the best leverage for beginners. Some peoples said it`s about:
1:20 and 1:50
?
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leverage is a financial tool which contains huge risk from all in Forex trading , make most powerful analysing money management and bring more money by using leverage.
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For a beginner, I’d suggest as less as possible.
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beginners should more careful when using leverage in a real account , they have to use first of all in demo to see the performance how it works.
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I think for the beginners, high leverage means high risks. So, less leverage like 1;20 will be the best option for the new traders.
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Leverage can amplify your capacity of trading but it can also amplify your profit and losses.
Big leverage - big potential - big risks.
Everything has to be commensurate with capital.
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I think for the new traders, 1:50 will be the best option for leverage. High leverage means high risks. so, try to use lower leverage at first.
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As beginner your aim should not be to make profit but to test your strategy without losing capital. Therefore, you should use as small leverage as possible.
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50x is more than enough for a beginner. also, you won’t get more than this with regulated brokers like
Fxpro has 30x for UK
Tickmill has 20x for EU
or Fxview has 30x for EU
Regulations don’t allow brokers to go over it.
Always remember leverage is a double edged sword, best not to play with it if you ain’t fairly equipped with risk management measures.
I dont think that new traders should use any leverage at all. It would be more beneficial to use leverage on demo account first and see if you really can make money on the market. Try different leverage levels and you will figure out how much leverage is your optimum
Leverage is trading is to give you the capital that you are unable to invest and earn profit.
For a beginner just start low, like 1:20 or 1:50 its the best choice if you don’t want to take on big risks.
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Of course, you should start with small indicators, because it will not greatly increase the probability of a major loss. And at this stage, it’s too early to call you a real professional. And for now, you need to stay as careful as possible.
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Depends what you want to do, you want to make money or practice?
If you are practising then low leverage.
If you want to make money and you have a solid system then 1:100.
If you want to risk it all then above 1:100.
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You can start with a leverage smaller than this also i.e. 1:5 or 1:10 just to be on the safer side as a beginner.
For beginners I would suggest as much as low leverage so that you have low risk, go with 1:20 leverage.
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This one’s a cool chart that shows the effect of leverage on your account + currency pair:
Here’s the link to the lesson in case you want to check it out:
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Choosing a leverage depends on whether you want to take low risk or you are interested in taking high risks.
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I dont feel there is any best leverage. It depends on the individual and the trading style to see what leverage suits him/her the best.