Hi TJMC,
Welcome to BabyPips! 
In addition to what others have already said here, you may find this earlier discussion useful: 301 Moved Permanently
I would say the best leverage is 1:1 but again it depends from the trading style and balance that a trader has.
Leverage can be used as a risk management tool if you know how to use it properly. Otherwise it can also blow up your account in a second. As Iām a newbie I prefer trading with high leverages (1:100 or 1:200).
How the hell can you trade once using 1:200 leverage without blowing your account? As a newbie you should be using much lower leverage, it makes no sense.
Good point, Jezzode, but this being the case, if I enter the same trade (8 mini-lots on a position with a 50 pip stop) using an account with leverage 1:200, would I not be taking the same risk (provided I have the same account balance!)? I suppose having $400 in a 1:200 leverage account would allow me to place the same order, but then I would be risking not 2% but 100%!
This point I agree with totally, you would be risking 100% on one trade, not to mention the required margin for the trade in the first instance.
The example I used was to illustrate the āused leverageā not the āmaximum leverage on offer that you could useā. The trade in question uses a leverage of 1:4, so any account maximum leverage on offer which is greater than 1:4 will always result in the same risk.
Can you explain why 1:1 is the best?
I think that it is the best cause not only i trade with my own money but it also minimize the risk to lose even more. Of course that requires a big deposit as well.
For me leverage type such 1:100 and 1:200 is too low , for personally i am prefer to use for higher than that , like 1:500 or even 1:1000 in certain broker , Its because i 've just low balance and for increase the margin i will choose higher leverage , i donāt care its risk for my account but i need it for use trade . maybe its will different views when i have big deposit
I guess you could say that for you had a large trading float, no one says you have to deposit the whole float into your trading account at once, but maybe you prefer to transfer just a portion of your float and use higher leverage, as long as you know your risk i guess it doesnāt matter.
I donāt see any different between 1:100 and 1:1 leverage when you trade at same volume, leverage is only risky if you use a small amount to trade larger volume (ex: 1 lot with 100$ is really dangerous)
Am I right that the leverage always depends on you deposit?
In forex, investors use leverage to profit from the fluctuations in exchange rates between two different countries. The leverage that is achievable in THE FOREX market is one of the highest that investors can obtain. Leverage is a loan that is provided to an investor by the BROKER that is handling his or her forex account. When an investor decides to invest in the forex market, he or she must first open up a margin account with a broker. Usually, the amount of leverage provided is either 50:1, 100:1 or 200:1, depending on the broker and the size of the position the investor is trading. Standard trading is done on 100,000 units of CURRENCY, so for a trade of this size, the leverage provided is usually 50:1 or 100:1. Leverage of 200:1 is usually used for positions of $50,000 or less.
Leverage does not depend on your despite, only there is a restriction on very high amounts on which you canāt use high leverages.
With leverage you can control high amount of trading with low capital. All brokers offer leverage and in forex you have access pf high leverage but that does not mean you use all of it. Leverage is risky the higher the leverage the more the risk.
Yeah you can do that but you should be very careful while using that as some time you have to pay out many folds if you make wrong trade.
Thatās the whole point of foreign exchange, big leverage traded wisly