please am a newbie i want to start with a $100 what is the best leverage i can use
You need to understand what leverage is and how it affects your trade. Once you do, you’ll know what leverage to use. If you are asking this question, it means you cannot do live trading yet. I use Forexchief broker and they offer up to 1:1000, but once must not use it unless he needs it for a particular reason and he is able to minimize the risk with it. In simple terms, leverage increases your capacity to trade in higher volume than what you would have been able to with your actual balance.
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Thanks a lot
How do you minimize your risk while using a very high leverage?
Leverage works an additional margin. It involves higher risk if you take higher leverage. Being a newbie, you should go with 200X. The reason for these heavier losses can come your way with higher leverage. There is always a risk of margin call being triggered. Therefore, leverage is a constant liability.
I agree you need to have a defined risk management strategy that you can stick to. High leverage is great when you’re winning but consecutive losses can be hard if not structured
i think the leverage you are using is much comfortable for avoiding unfortunate losses and risks , sounds well. just never use high ratio at all. it could be dangerous . happy trading.
according to me , any leverage ratio is best if you can use it , generally we fail to fix up leverage according to balance and knowledge , so we loss by means of this.
Give this a read my friend about leverage.
In my opinion, you should start with a low leverage of 1:25 and if you are successful you can increase it to 1:50 but don’t go north of 1:100.
use the risk management percentage rule. Do not exceed that 2% or 1% on each trade that you have agreed upon.
That’s what I also do. I never risk more than 1% of my total capital. I have faced several losses in my trading career and this rule works great with my money management requirements.
As long as you know what you are doing, you are good with anything that you risk. You don’t always need to follow the rule because sometimes breaking the rules can also benefit you.
You are a newbie and you want to use leverage? That is a very bad move, honestly.
I suggest you to learn more about leverage, because it may give you a profit, but it can honestly make you lose everything in a single trade.
As a newbie, start learning more about forex and how trading works. And then try out the demo with their leverage and see how it turns out for you
1:100 leverage is OK, I used it to start with Hotforex micro account, it’s up to you if you use the power of leverage, managing position size solves risk management problems easily.
It is the other side of the story and it is also true. But if you ask me, I have never risked more than 1% of my account value ever when trading with fxview, ICM, or any broker I am using.
If you are just starting to use leverage, I truly believe that you should start with low leverage like 1:5. By doing this, you will get to know how leverage works and that too without having to risk a lot of your money. Remember that the chances of making profits with leverage are equal to the chances of making losses.
Leverage is a double edged sword. We need to be leveraged to be able to trade in financial market. However, the higher the leverage, the higher the risk is. Thus, it is to be used very wisely. With $100 investment, I would recommend that you may go with 1:50 leverage.
There is nothing like the best or the worst leverage in the forex market. You should use the leverage that makes you comfortable while trading. You must not put anything at risk that you would need in the coming time. Try to take advantage of the market on the basis of your knowledge.
If your a beginner, I suggest trading using lower leverage so that you can gain experience in live trading and the risk involved in using lower leverage is lower as well.