I am curious as to what leverage others use.
Do you use: 1:1000
all the way to 1:1?
Leverages are very luring but at the same time a trader must keep in mind that its risky too, while using leverages a trader must be sure of making a positive trade.
Depends what I am trading, but everything from 1:100 and up to 1:400
Yeah, that is the killer for new traders that are money hungry with the crazy leverage.
Just to give you an idea how overated leverage is. I trade down on tick charts chasing 10 or so pips at a time. To make my system profitable on a 1 trade per day basis I use 1:20.
Now if I place 4 trades a day or was chasing a 40 pip I would only need apply 1: 5. You just dont need it to trade with.
Where it comes into play is to prevent a margin call. This allows a small account holder such as myself to open a basket of trades without fear of trades going into drawdown then being closed by my broker due to margin before they have had time to work.
Don’t get to caught up with it. Take all the leverage your broker will offer. Just don’t trade with it.
Leverage is a double edge so it is important to be careful when using it. I still trying to gain much experience so i use less leverage to avoid losing so much in my trading.
Leverages are very luring but at the same time a trader must keep in mind that its risky too
I keep leverage at 1:100 or even lower. The way I see it is the larger the deposit you have, the smaller risks per trade you should take. As most of the commentators said here, the higher it is, the riskier it gets.
Hi Koji,
I believe a distinction needs to be made here between the maximum leverage available on your account, and the effective leverage you are using which is a ratio between the size of your trading positions and the equity in your account.
Traders talking about 5:1 leverage are referring to effective leverage. Traders talking about 100:1 leverage are usually referring to the maximum leverage available on their accounts. The higher the maximum available leverage, the lower the minimum margin requirement for trades. A maximum leverage of 100:1 equates to a margin requirement of 1%.
Since I live in the US, my maximum leverage is limited to 50:1 by CFTC/NFA regulations. However, I never use more than 10:1 effective leverage .In addition to what others have already said here, you may find this earlier discussion useful: 301 Moved Permanently
I use 1 : 200 and on mini account I use 1:500
10:1 all the way!
Keep the pressure down and helps with disciplined trading.
I am prefer use bigger leverage , cause with bigger time frame its will offers the more margin that available in the account balance . then i can trade more when i just use low capital as retail trader
It really depends on how much money I am trading with. I have multiple accounts and my broker offers leverages up to 1:500. On my big accounts I try and use a leverage between 1:100 and 1:200. On the accounts that I have with smaller amounts of money where I am testing things I use the max leverage. 1:500.
I usually go with a 1:20 leverage as I’m feeling pretty confident using such a level.
I normally use 1:200 leverage. My broke offers highest leverage. I have to use it according to my needs. If I am doing full risky trading I some times use 1:500 leverage. With planned trading I avoid high one so that my account not blow up very soon I can handle it with my skills.
believe or not, it’s more important to protect your capital first then think about making money.
i am using 1 : 500 is it ok?? kindly tell me with each trade how it works
It depends on many factors, if you can control your money management easily with such leverage, then you can trade using 1 : 500.
Good question, how much leverage. Again i think it depends on your risk management. I can do 1:100 and use only 2% of my capital per trade, this is similar to 1:500 leverage while using 0.4% of capital per trade. it is the same thing. I think whatever you are willing to risk/loose per month/week/day is the real question and that is what can be used for trading at any leverage you wish and then adjusting/translating that number to x trades per month, with y stop loss with z % of your cap per trade in line with whatever leverage you wish. Anything is possible with numbers.