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Author Topic: Leverage  (Read 895 times)

Offline grndcomm

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Leverage
« on: January 23, 2019, 02:39:59 AM »
Newbie question here. I have the option to choose from 1:100 to 1:500 with my broker. For example if I have account balance of $1000 and drawdown of $100, which leverage would produce the highest free margin?

Thanks
KD

Offline reinerh

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Re: Leverage
« Reply #1 on: January 23, 2019, 03:29:34 AM »

thats an easy one,

500 will give you most free margin.

Offline DamBuster

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Re: Leverage
« Reply #2 on: January 23, 2019, 05:09:56 AM »
Newbie question here. I have the option to choose from 1:100 to 1:500 with my broker. For example if I have account balance of $1000 and drawdown of $100, which leverage would produce the highest free margin?

Thanks
KD

With all due respect, if you need to ask a question such as this then trade demo for at least the next 6 months

Offline drunkfx

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Re: Leverage
« Reply #3 on: January 23, 2019, 12:34:49 PM »
Newbie question here. I have the option to choose from 1:100 to 1:500 with my broker. For example if I have account balance of $1000 and drawdown of $100, which leverage would produce the highest free margin?

Thanks
KD

Of course 1:500 provide you with more margin but of course it has pitfalls. It allows you to open higher lot size what essentially mean your margin becomes more vulnerable to volatility. For example with 1:20 leverage and 500 deposit you can open position equal to 0.1 lot max and every pip change will produce 1$ change in your deposit, but with 1:200 you can open 1 lot and pip value in this case will be 10 dollars. If price goes against you with 1:500 leverage your big position can drive your trade to stop out quickly.

Offline grndcomm

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Re: Leverage
« Reply #4 on: January 24, 2019, 01:17:18 AM »
Thanks to all, much appreciated

Offline Hilapur

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Re: Leverage
« Reply #5 on: May 08, 2019, 08:53:31 PM »
Whichever leverage you choose, remember to be very careful with it. The tricky issue with lever is that it can help you to increase your profits when your trades are positive, but it will also increase your losses when you are in lose deal. So, as a beginner, always choose lower leverage

Offline grobanjosh

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Re: Leverage
« Reply #6 on: May 24, 2019, 10:59:44 AM »
Whichever leverage you choose, remember to be very careful with it. The tricky issue with lever is that it can help you to increase your profits when your trades are positive, but it will also increase your losses when you are in lose deal. So, as a beginner, always choose lower leverage

Very risonable comment!

 

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