Morning once more, I have a question now on Margins/Leverage: what is the best one to start off with wqith a 1000GBP mini account speaking to customer services at FXCM they say you start with a 200:1 Margin but can change, I thought that lower the margin the better for the trader but then this is more money to spend and risk at first.
How surprising that a broker should advocate 200:1 leverage.
Some here would say 100:1 no higher, but the idea of demo is
to try all of these various ideas out. Try 200:1 leverage with
a �1 000 account see how far you get, if you can make a profit
then go for it.
But the idea is to leverage your account enough to keep you in
business, not too much.
Personally at this stage I would say do not go above 50:1.
The first question you need to ask yourself is how big a position you expect to be taking and/or how many of them you would hold at the same time. This, of course, should all be based on your risk profile. Once you have that sorted out you choose the leverage ratio which makes the most sense for you. As daydreamer65 said, 50:1 is more than sufficient for most folks, but there are those who’s strategies require higher ratios.
Hi Rhodytrader, Thank you for your advise I am at the moment very new and still on and a demo trade doing 1 to 2 trades a day studying the daily charts using a RSI 8 & EMA 8 chart and I am learning, My capital would be about 1000GBP when or if I go live see how I go, most people I talk to are saying that a leverage of 50:1 or 100:1 is the safest or less risk way to go would you agree, I am now about to go back to the Babypips school and read the leverage section again as I start to understand it then I get confused and then read again, very much a roller coaster ride which I am enjoying though.