Well the stats all the brokers have to show about how many traders lose doesn’t really make anybody confident right?
THE ISO 4217 STANDARD
For standardization purposes, each world currency is designated by a particular three letter currency code assigned to it by the International Organization for Standardization or ISO. This set of currency codes is referred to as the ISO 4217 Standard.
In most cases, the ISO 4217 Standard code for a currency will consist of the country’s two character ISO 3166 country code (also sometimes called the Internet country code), in addition to an extra letter referring to the name of the currency unit.
Yes . As long as you risk a maximum of 2% risk per trade.
Having the leverage doesn’t mean you must use It. Dont waste your money
A high leverage setting on your terminal is always better.
With my account that I trade live my leverage is 50 to 1 which is the maximum allowed in the United States.
At 50 to 1, it cost me about $21 of margin to open up a 0.01 lot trade.
At 500 to 1 it cost me 10% of that($2.10) to open up the same trade and earn the exact same amount of profit per pip.
No matter what your leverage is set at, a 0.01 lot trade of Euro USD will earn you $0.10 per pip, but at lower leverages you must put up more money to earn the same profit.
I would rather play with unlimited leverage.
If I could play 500 to 1 in the United States, I would have 10 times as many chips to walk up to the poker table with right now.
A really aggressive way to play high leverage is to figure out how many lots you can play and only use 98% of your account in margin plus spread draw down and then use the margin call function as a stop loss.
If you lose that trade you lose couple percent but if you win the returns will be astronomical.
what is the margin call percentage on your account then …???
usually 25% so you cant use 98% of account .!!!
Margin percentage really doesn’t mean much to me but what I do understand is that if my equity drops down to less than or equal to my margin used then I start margin calling.
if(equity<=margin used) …margin call();
That’s how it has always worked on every meta trader that I’ve ever traded on and I’ve traded on several several several meta trader brokers.
Please note that it could be different elsewhere but that’s the way it’s always been everywhere I’ve ever been if the equity is less than or equal to margin used then kaboom.
I’ll say again No broker i know gives you margin call at 2% of your account
it’s got nothing to do with metatrader the Broker sets it’s margin call and stop out limits
Nobody would use 98% of there account balance because the broker would give margin stop out out before you could do that !!!
i don’t understand your logic…???
Do you see my equity of 287? And my margin used of $255?
At present I have twelve 0.01 lot trades on the table
$255.83/12=$21.31 margin for each 0.01 lot trade.
At present I have $30 free margin approximately.
I could add one more 0.01 lot trade but I would be really close to margin calling.
You have to do the math yourself but if I had the account that I’ve got right now and I put a single 0.12 lot trade on the table it would be about $30 away from margin call. But of course that would be approximately slightly more than a 10% loss.
If you do this then you are playing the absolute maximum that you can and still use money management.
If you have further questions please ask.
If you want to see what I’m talking about then just open up a demo account with say $500 in it and then just start opening up 01 lot trades and you’ll see when you’re equity is less than your margin used it will start margin calling.
So anyways my logic is open up a single trade where the trade margin used plus your drawdown will allow you to have a little bit more draw down but your total loss would be 3 to 5%…
If you lose you lose 3 to 5%, but if you win it could be astronomical.
your not using 98% of your account using 0.01 lots
i don’t do demo accounts anymore mate.
a single 0.01 lot trade of Euro USD would use about $21 of margin but I can place multiples of those trades on the table.
Feel free to test this out with a live account see if I care.
For me ,i would not trade 100 $ with an broker who offers 1000:1 leverage. Instead, I would make deposit 10 cents and trade only with a broker who offers leverage up to 99999999999:1. Because i dont want to risk 100$ on markets,but only 10 cents and open 500 lots every trade
Man,wake up pls. Trading with 100 $ its pointless just a waste of time.
I know what margin call is and if you are using 98% without get margin call then all I can say is broker must be dodgy or something is not right.?
If someone is going to take trading seriously they going to need more than $100 capital to make any decent money
It takes me time to plan and execute a trade so I don’t want to get paid pennies / cents for my time
Actually, I do use 100:1 leverage in a $100 account as part of gambling to earn a massive amount of profit within a very short time.
Considering $100 barely buys a steak dinner these days, why not, if you can afford to lose it. I’ve blown more than that on dumber things during my lifetime. But I just noticed that I made a good point, here:
You should only trade what you are willing to lose, and your family’s grocery money does not fit into that equation, ever.
I see comments like these and I have to shake my head in wonder. Are people like these aware that a large proportion of the new traders on a site such as this may not be even earning US$200 for the entire year? Think about it. I guess everything boils down to being naive, uninformed, and perspective though.
I don’t expand my leverage size because I know that if I do so, I can’t survive in the market for a long time.
No matter what leverage your account is set at, a 0.01 lot trade of Euro USD will make or lose you 10 cents per point.
At 50:1, a 0.01 lot trade of EURUSD requires approx $21.00 of margin…
At 500:1, the same trade only requires $2 of margin.
At 1000:1, the same trade requires only about $1 of margin.
With higher leverage, it’s like having a very fast motor in your car, but you don’t have to push it to the limit.
With higher leverage, you’re much farther away from a margin call.
With lower leverage, you get the same profit or loss per point but it costs you more money to open the trade… It costs you more money to put up as margin to earn the same profit… would you rather put up $1 to earn 10 cents per point or would you rather put up $20 to earn the same profit?
I will never want to. When I was a newbie, I did it out of knowledge and got many of my trading balances crashed.