[1] I am primarily interested in Forex NOT to earn massive amounts of pips, but rather to spread out my cash holdings over a few different currencies & higher interest rates than what I’m currently getting in my USD checking account.
[2] I’m more concerned about wealth preservation than wealth building (in other words… very LOW RISK… holding… not speculating).
[3] SO… I’m looking for a Forex broker that allows very low leverage (1:2 or 1:3 preferably). I’ve looked at OandA and FCXM, but it seems the lowest leverage they allow is 1:10 and 1:100 respectively.
[4] I’ll be funding my account with $100k.
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Someone on a different forum said that the [B]MINIMUM[/B] leverage offered by the broker is different than the [B]ACTUAL[/B] leverage that I can achieve on my own simply by managing my trades properly – So even though the broker offers a 1:10 [B]MINIMUM[/B] leverage, I can get 1:2 or 1:3 by managing my trades properly.
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[B]Please… someone tell me if this is correct:[/B]
The broker lists the leverage as 100:1 (or whatever) on each [B]individual trade[/B]. But I’m looking at my total exposure across [B]ALL[/B] trades.
So effectively, with $100,000 in my account if I have:
(1) $100,000 AUD/USD trade
(2) $100,000 NZD/USD trade
… $200,000 TOTAL -----> My [B]ACTUAL[/B] leverage is 1:2
AND/OR
(1) $100,000 AUD/USD trade
(2) $100,000 NZD/USD trade
(3) $100,000 GBP/USD trade
… $300,000 TOTAL -----> My [B]ACTUAL[/B] leverage is 1:3
[B]Can someone confirm/deny that this is correct?[/B]
I’m also interested in any constructive opinions about this strategy.