From what I have gathered, leverage adds to the mundaneness of the market and no matter what broker you choose, they will have a different level of leverage. This depends on their regulations and some rules.
I was reading somewhere Paul that even some professional traders choose to go with lower leverage considering their risk management.
I am with you on this one. Why change it with every trade and create confusion. I believe in keeping it simple and fixed at least for some trades.
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I was wondering if there is an ideal leverage of any kind that brokers tend to use for their trades? Sorry if this sounds foolish and Iāve just started with forex. Any clues for me?
It is possible to change leverage on a demo account easily as there is an option available to the client to do it himself usually. However, changing the leverage on a live account is not that easy, you need to get it done by the broker and it can create a choas also.
But it is a possibility is what you are saying?
Leverage is given on a particular account. I donāt think that you can change leverage for every trade. Even if you can change the leverage of a demo account easily, changing leverage on a live account is difficult and done by a broker only.
It seems a pointless over complication to me certainly.
Ya Iām sure itās done by a broker but it can be done right?
Oanda will let you change your leverage on your own, through the My Funds section on your Account page. Thereās a simple drop down to pick what leverage you want to use across the entire account.
So no need to contact anybody.
The professional traders do nothing without having a proper plan. So if they are choosing low leverage, they must be having a strategy for it.
No, nothing like an ideal leverage. You find your own best suited leverage and see if it is making you any profits or not.
That sounds quite alright then! But hey, you know I get confused with their commission charges. Thereās some sort of mark up right?
Trading without leverage is quite difficult. You can trade with different ratios provided that your broker is having flexible leverages. Else you wonāt be able to do it. I have traded in 1:200 leverage only with Fxview. They have a maximum leverage of 500x. Pepperstone also gives 500:1 leverage. I personally donāt like taking high risks.
Brokers make money on the spread or by commissions or by both. The school here talks about it.
Oanda actually lets you decide how to price your trades. Depends on your volume of trades. Hereās the options on my account under Pricing Options. So you decide what works best.
I have heard that one gains low profits in low leverages. So what is the point of trading in low leverages? Need a good advice.
Iāll surely check it out and get back, thanks dude
True, but if you trade using high leverage, your risks are also high and for a beginner, taking such risks can cost you your money.
You are not bound to use particular leverage. Most brokers offer a certain leverage limit but it doesnāt mean that you are bound to use it all. You get the option to choose whether you want to trade using leverage or not and if yes, how much!
Of course, you can change leverage after a trade. You can customize the use of leverage in accordance with what you want to risk. Nearly every broker offers the option āChange Leverageā that you use as per your trading requirements.