Hi guys, trust you are all well. I’m new to forex and don’t understand leverage that much. I want to trade within constraits and not have to owe more than I plug in, should I lose a trade. One thing I’ve picked up is not risking more than 1% of capital in a trade. So if I have a $100 account what what would the leverage be and is it possible to trade with a $100 account?
leverage always huge risk when trading , so before using leverage try to ensure how to manage risk ?
whatever you want it to be
leverage isn’t determined by account size
yes, it’s possible but highly inadvisable
even to trade a microlot, you’ll need more than $100 to use 1% position sizing
and using 1% position sizing is a really good idea
This calculator should be able to help determine how much money you need to trade. Based on my limited understanding, I think you’d need a 10 pip stop loss if you had a $100 balance and wanted to only risk 1% on EUR/USD (this would represent 1 microlot). I think @flamingoproxy is saying it’s highly inadvisable because a 10 pip stop loss is pretty tight (you could blow past that in a minute)