big leverage is equal to margin call
1:50 right now
Good and as long as below 1:200, I think it still can be consider healthy trading or money management.
To me leverage is immaterial. It’s just a tool to help you get in a trade with less money. If you use 1:500 leverage, it does not mean you will lose $500 for every point the market goes down.
The real question is how big a STOP LOSS you use as a percentage of your Trade Account size. Using improper percentage as your stop loss is the real killer for most traders.
I use 2% max as my risk capital for each trade that take. When I trade ES with two contracts, my stop loss is set at 2.5 points from my entry. Which means I have 2x2.5=5 points x $50=$250.
To backup this trade, set with $250 risk money, I have $12,500 in my account to keep my risk tolerance not to exceed 2%.
Think once again, is the real killer Leverage or Risk Tolerance ?
I just like 1:400. works fine for me!
Why is it equal? Not every time. It all depends on the size of deposit.
1:50 works for me.
well I have 1:555, but my money management does not allow me to use a small portion of that.
I agree with the gambler part. Once you let your emotions to take over your judgments you are most likely going to lose everything, especially if you have higher leverage. IMO 1:200 is high enough for forex. An option for 1:400 for some of the major pairs would be great too. But what I would like more is to be able to get lower leverage like 1:20 or 1:10 for example if I want to decrease my risk.
just to clarify, 5 points is 0.5 of a pip, if so surely you get stopped out mmore often than not?
Well using highest leverage for all traders is not good. It can leads toward big loss.
It better to start with minimum leverage and increase it slowly. That’s why i mostly start trading with 1:20…
A piece od advice, if you are new to trading avoid using high leverage ratios. I personally use 1:200 and at times 1:300, but never go above 1:300.
It is all personal choice. It depends on the capital, number of EAs, experience. I am more conservative on the leverage and I go with 1:20. I think we should not be greedy having a lot of profits. Do you agree that having smaller leverage is a tool to avoid greed?
I think every trader should use 1:50 leverage to reduce trading risk.
This is totally your personal choice. It depends on the capital, experience you have and trading strategy you’re using. It is always better to start with low leverage ratios so that you can avoid huge losses.
I use 1:200. For me it is the appropriate leverage.
I think it is wise to use 1:50 leverage. And if you use this leverage, the account is protected.
I use 1:200.
I’m not very familiar with leverage - trading with a UK-regulated firm I am restricted to 1:30 for the major forex pairs and 1:20 for everything else I have so far checked.
So if your leverage is at 1:200 and you want to set your capital risk per a given trade to 1% of your account capital, with a stop-loss at 72.5pips from entry, is this practicable? What are the problems?
I use 1:30X leverage as it is a double edged sword and should be used wisely