Best leverage to set up your account with for carrying trades overnight

I trade from 12 hour charts which will involve carrying trades for anywhere to 1 day to maybe 5 to 6 days before exiting.

My question, in the big picture financially would it be better to set up your account for the lowest 50 to 1 leverage which gives you the lowest carryover rates but which will allow less of your equity to position size from because 50 to 1 takes more out from your equity per trade than 100 to 1 leverage. Or would it be better to set up your account for a higher leverage, 100 to 1 or higher, which would charge you more for the carryover rates but will allow more of your equity to position size from because it takes out less of your money per trade.

I do not trade 50 to 1 or higher leverage, I am just talking about the leverage I set my account up with. I use FX SOLUTIONS.

It shouldn’t matter what your leverage is because your money management under either 100:1 or 50:1 leverage should only allow you to open the same size position.

The position size percentage(1%) stays the same no matter what leverage your account is set up as but you are actually position sizing less per trade using the 50 to 1 as opposed to the 100 to 1 for example. Reread my post its all explained.

But what limits your position size? I sure hope it isn’t your available margin, because that means you are risking ridiculous amounts of your account (unless you’re setup at 3:1 or 2:1 leverage). It should be limited by your risk appetite, so that you can survive drawdowns on your account. Carryover interest payments (either to you or from you) are paid based on the number of lots open at the time of carryover.

Read the post and figure it out. Its there, you are not getting it, your reading into my post not understanding what I am saying and twisting it to a negative for the question.

So how do you determine your position size? And what is the biggest position you are willing to take at any point in time?

Either one.

It depends on what you prefer.

Same type of argument is always brought up
regarding mini acct or standard acct;
100:1 VS 200:1

It depends on what your personal preference is and
all the argument revolves around one’s personal
preference always and nothing more. People like to
put a spin on it as though it is very important aspect
of trading but it is not.

But whichever you decide to do, you must choose it
and stick with it. I stuck with the 200:1 mini leverage
for quite a while until my balance exceeded $100K
because the leverage and the margin is quite a bit
more advantageous than the one provided by
standard account’s. But most brokers do have a
ceiling limit placed on instant execution lot sizes
so at a certain point, it became utterly pointless
to keep trading mini account so I had to switch
to standard account so that I can actually take
better advantage of my strict money management
strategy. Because my 10% MM was exceeding
the maximum instant execution lot sizes. Thus
making sense to switch to standard acct with

I see from the comments you have gotten that
people really haven’t sat down and did some
simple math to see how each leverage/margin
level works using a specific percentage of money
management. I thought this was basic
knowledge with trading? So bottom line is this
choice really depends on your personal choice,
your current balance, and whether your
money management has hit your broker’s
instant execution lot limit size. Most important
factor probably is whether your MM% has
a limited effect on the instant execution
lot sizes. Using my example, I had to go with
Standard’s 100:1 even though I really preferred
Mini’s 200:1. I don’t think it matters what you
do unless you come up on some limitation placed
on your trades; then by all means, change or you
limit your profits in the long run. I hope this was
what you were asking because I really don’t see
why it matters unless it is limiting you at some
point like it did me.

Carry trade does not change when leverage changes as the carry
(or interest rate) is calculated on trade size.

ie 100 000 units of Eur/Jpy has a trade size of 100 000 X Eur/Usd
exchange rate (1.58) = $158 000.

but at 20:1 leverage that is a margin (deposit) of 158 000/20= 7900
50:1 = 3160
100:1 = 1580 etc.

But yes at higher leverage it leaves more in your account to open
more positions with…