Does only ultra-leverage exist?

Hi folks.

I know that many traders are alergic when a newbie says “leverage”, although I am very aware of risk it bears. One day (not yet), I’d love to open a micro account of 5 000 $ and from time to time, I am sure I will want to use leverage. Hovewer, I can everywhere see the offers of 100:1, 400:1 and so on. Does any broker provides leverage as small as 2:1, 5:1 to micro accounts? Thank’s!
PS: I hope you won’t find my question that stupid, but trully I was unnable to find this information.

Hey Zahum… just because its offered, doesn’t mean you have to leverage up. There is one exception to that in that if your deposit is below the minimum position size some brokers have. If that’s not the case, then trade small, which is actually the best way to go as a newbie or even as an experienced trader.

Hey Zahum,

Are you aware that there is a difference in the leverage a broker offers, and the leverage that you get on each different trade? There is a difference in maximum leverage (that brokers offer on their sites) and real leverage (that is calculated depending on what trade you setup).

If not I suggest you check out the theory in School of Pipsology | Learn Forex Trading

Hey,
Was looking for one of such leverage threads to discuss my query. And I think I have found out one!

I am really very confused :eek: as to how much leverage shall one demand while trading upon any forex instrument. Like its said with higher leverage we can trade with less amount of margin. But is this really beneficially to the traders like me who employ the capital of $100-300 for trading.

Hi Dutchtrader,

I think I might haven’t put my question right. What I mean is, that brokers offer 100:1, 400:1 and so on leverage because if you make big money, they will. If you loose big money, they will pursue you for that. For them is win win either way. So maybe, as well as sobe brokerage says that maximum leverage is 100:1, they might also have minimum leverage, let’s say 20:1. So is there any bottom line like that? Because I’d like to open micro account and to use leverage 5:1 tops, but I don’t want to be said, they don’t offer such a leverage, because it doesn’t worth it for them. In addition, is it posssible to trade micro without any leverage at all?

Thank a lot for your reply!

Zahum