I agree with you. It is a bad trading setup that makes using high leverage a risk. With high leverage you could amplify your profit as long as the losing trades are at minimum. My use of Forexchief broker, gives me access to 1:1000 leverage. I use up to 1:500 and it works very well for me.
the newcomers think always high leverage contains high risk but i dont think so , if there is any risk its all about non-sense planing with zero risk management.
That depends on lots of factors and not just the leverage. What type of instrument you are trading and your trading account capital also matter when you choose a lot size to trade. Otherwise, it is on the broker what is the allowed size.
We must understand that if we are using a Lower amount of Trading leverage settings then our income in the business will be more.
Go for on lot size if you’re using this leverage. It’ll be safe.
Are you using any leverage in your trading?
Who is your broker that is offering you this much leverage?
Maximum lots can be depends on your trading, you can go for 100,000 or even 1000, depending on your trading and order.
1:500 with offshore brokers.
The lot size you want to use depends on the instrument you are trading and not on the leverage you are using. This means you can choose any lot size. Leverage will only affect the profits or losses that you make.
i dont think 1:3 leverage is gonna make any difference in trading. you atleast need 50 to 100X
The answer also depends from your capital amount mate.
May I know what you are trading? Forex or commodities? Also, lot sizes vary from one broker to another. I normally go for the lot size calculator that my broker offers on his platforms. Kinda makes things easy…
Well if you want to trade more number of lots then you should go for higher leverage. Some brokers offer less leverage so you need to decide what works best for you and accordingly find a broker
I personally don’t think that using leverage is a good idea especially if you are a beginning trader, because it brings lots of risks despite the opportunity of high incomes. Of course you can use them in case it suits your risk management strategy, buy you have to use it wisely and it’s really wise to use the minimum leverage which your broker offers to you. Gradually, you can increase this leverage and stay stable because you will gain knowledge, skills which allow you not to lose all your deposit. It’s neccessary to think of risk management and money management every time you decide to use leverage.
depends on the amount present in your account. The leverage is also related to the amount/margin available in your account.
Higher leverage will not convert your record from losing to winning. If leverage is the difference between making a profit and breaking even, you are probably under-capitalised.
Set up a consistent profitable winning record, and only then think about how much you can increase your leverage, but do it gradually.
hi, maximum lot size you can open depends on your choosing instruments. you can read on how to calculate lot size to determine what the maximum lot size you can open with 1:3 leverage.
It depends on your broker, some broker offers 100 lots size and some offer maximum 50.
leverage setting ONLY AFFECTS THE MARGIN REQUIRED AMOUNT when opening a trade.
(but it also affects how and when you will hit a margin call, explained later)
a 0.01 lot trade of eurusd will earn you TEN CENTS($0.10) per pip of profit or loss, NO MATTER WHAT YOUR LEVERAGE IS SET TO.
please note that different currency pairs have different margin requirements and they will also pay slightly different amounts of profit or loss.
your leverage setting determines two things, one of which is HOW MUCH MONEY YOU NEED TO EARN THAT TEN CENTS PROFIT OR LOSS.
at 10:1 a EURUSD trade of 0.01 lots requires approx $115.00 of margin.
at 50:1 a EURUSD trade of 0.01 lots requires approx $23.00 of margin.
at 100:1 a EURUSD trade of 0.01 lots requires approx $11.50 of margin.
at 1000:1 a EURUSD trade of 0.01 lots requires approx $1.15 of margin.
the second issue that your leverage setting will affect is at what level you will HIT A MARGIN CALL…
a typical metatrader broker will begin margin calling your trades when your EQUITY IS LESS THAN OR EQUAL TO YOUR MARGIN USED AMOUNT.
this is a simple, yet complex issue to deal with.
technically, when brokers tell you that you are SAFER when you trade at lower leverage, they are sortof LYING to you in that they are not telling you the whole story…