Hello guys…
Just asking with an account of $100 balance which leverage is to suit and maximum positions using micro lot should atmost be…??
Also using a minilot maximum positions opened should atmost be…??
It may be silly to ask over here but anyone with an idea can help.
when using any kind of leverage at any account , just ensure good money management, otherwise you can fall a great trouble.
Ok thanks much.
you basically asked half of the money management side of forex in a few lines.
I try to explain concisely but for more info you have to check out money management sections.
In general 1 to 2 percent of your equity is a safe portion of your account to risk in every trade but with smaller accounts, you can increase that to 5%.
with your $100 account, assuming your sl is 20 pips on eur/usd , your lot size could be something between 0.02 to 0.03. 0.01 lots are worth 10 cents so you risk $4 to $6 or 4% to 6% of your account each time. As the account grows, you have to modify the numbers based on that.
regarding leverage, the bigger account the lower leverage and vice versa. with a $100 account go for 1:400 or higher.
Thanks this is a good help.
I wouldnt advise trading with $100 at all.
Let alone use a leverage of 1:400. But it all boils down to who is trading and what strategy is being used. When I am feeling very confident on a particular trade, I raise my leverage. Even though Forexchief offers 1:500, the highest I have used on one of my standard account is 1:500. Its the strategy and confidence level that matters. Do not use a high leverage or volume when you are not sure of your strategy.
If you use a true ECN account, this balance might not be enough to trade min lot sizes if you do not set a proper leverage, the higher your leverage is, the more chances to open a trade you have.