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Author Topic: Leverage query  (Read 115 times)

Online vik2001

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Leverage query
« on: Today at 06:03:21 AM »
Hi.
Had a general question about leverage. Say i want to copy a signal using a leverage of 1:500.
But with my broker im using a leverage of 1:30, Will this cause me any issues when copying the signal as my leverage with broker is different to signal ?


Offline Fastrack Forex

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Re: Leverage query
« Reply #1 on: Today at 06:06:51 AM »
depends on the trader's trading style. Why not you ask the trader himself?

If he opens too many trades on his 500:1 account, you will be affected as your leverage is only 30.

Offline petersurrey

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Re: Leverage query
« Reply #2 on: Today at 06:38:06 AM »
Hi.
Had a general question about leverage. Say i want to copy a signal using a leverage of 1:500.
But with my broker im using a leverage of 1:30, Will this cause me any issues when copying the signal as my leverage with broker is different to signal ?

If it is on MQL5 they work it all out for you example 30/500 or 0.06*master account lot size = your new lot size if using the same size account...otherwise adjust for account size and lot size to ensure you don't max out. A 30:1 broker requires approx 3K margin to open 100K lot size. If the master account has a much lower balance you can increase return/loss by making your balance much bigger. If using a fxblue trade copier you can adjust to suit any size you like within the limits of your account.

Offline gpfwestie

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Re: Leverage query
« Reply #3 on: Today at 10:01:15 AM »
I think Peter Surrey has covered everything there.

I think you can reduce your multiplier to keep your margin requirements roughly correct, but trading at 1/10th risk will likely make the return so small as to be pointless. If your return was projected to be 2% per annum say, well Forex wouldn't be a good investment given the risk of a signal provider wiping the account out.

I notice in another thread your looking to invest about 30K or so. I would put some time into understanding the maths behind risk, margin and leverage fully. I know it's boring, but that's a lot of cash to be relying on advice from strangers on the internet.

Good Luck.

Online vik2001

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Re: Leverage query
« Reply #4 on: Today at 11:12:31 AM »
Thanks guys explained well  ;)
I wasnt entireley sure if the copier makes the adjustment for you like peter said or in this instance perhaps would be better of using fixed lots for every 1000/2000 invested. 

The only issue why i didnt want to use fixed lots say 0.01 for every 1000 invested it would have to be adjusted in the copier if the balance went up or down accordingly.

 

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