Jump to content

Margin And Leverage In Forex


Recommended Posts

In Forex history, margin and leverage accomplish enormous influenced in trading time. Although many traders, especially newcomers are think high leverage is very indispensable to make profit with a big lot trade. But it is very immature thought to take a big leverage without having most accurate powerful trade knowledge. Although by getting big leverage it is possible to trade with a big lot in spite of having small balance but, another thing you can lose your whole balance also.

Link to comment
Share on other sites

margin and leverage have a close relationship and therefore we need to select the appropriate leverage the capabilities of our trading. in choosing the leverage we also need to think about trading psychology. during our trading psychology bad it would be better if we can trade with little leverage

Link to comment
Share on other sites

It’s true, maximum new Forex traders very much interested about high trading leverage. Because, they want to make big money on the power of big leverage. But, the reality is different. Because, all professional Forex traders always prefer to use small trading leverage. Because, high leverage is much dangerous for trading capital. So personally, I always like to use 1:100 leverage. Though, I can use :400 leverage from GCI. But, I am not interested about this big leverage. Not only this big leverage facilities, but also I get all trading facilities from this ECN trading broker. Even, I can trade all Forex currencies, Indices, Oil, Gold and CFDs. So, it’s very simple for me make huge money for every month.

Link to comment
Share on other sites

It’s very obvious that it’s the leverage that makes Forex so much popular. If we take out the leverage benefit than I don’t think many traders are going to work here anymore since it’s the low investment factor that we need to look at for with high leverage. I am also trading due to been able to invest lower amount yet get a very high amount of money to trade due to added margin levels and that’s why it’s very crucial.

Link to comment
Share on other sites

  • 1 month later...

Leverage is an important financial tool that allows an investor to grow his capital exposure to a level that exceeds the initial investment. generally, all we think , high leverage can bring a large profit in a short time, but pragmatically, sometimes it causes a great lose especially news time. So, I always prefer to trade in a small leverage although my trading platform MxTrade provides 1:400 leverage.

Link to comment
Share on other sites

Margin and leverage are very crucial aspect of trading and I really need to have high leverage because my investment are usually low as I am just a student so I love working with Nova FX, they have excellent leverage high up to 1:1000 so with my 100 USD investment I am able to trade with full license and that really brings the best out in me while their trading platform is also so smooth so really had no problem trading with them so far.

Link to comment
Share on other sites

I am not against about high trading leverage. Because, I see good skilled Forex traders are making huge money from their small trading leverage by using high leverage. In addition, I get 1:400 leverage from ‘TradingBanks’ trading broker. so, I’m also making enough money by trading. On the other hand, I can withdraw my big profit without any extra fees. So, I get best trading environment for trading.

Link to comment
Share on other sites

I am not against about high trading leverage. Because, I see good skilled Forex traders are making huge money from their small trading leverage by using high leverage. In addition, I get 1:400 leverage from ‘TradingBanks’ trading broker. so, I’m also making enough money by trading. On the other hand, I can withdraw my big profit without any extra fees. So, I get best trading environment for trading.

Leverage in a broker must be maximized as well as possible. We must remember with the risk in forex, our management skills and controlling skills must be owned especially when we trade with higher leverage

Link to comment
Share on other sites

Leverage is one of the tools used by the broker to improve balance traders to trade in the forex market. each broker has its own policies regarding the maximum limit leverage. but I am very comfortable using the leverage of 1: 500 in Tickmill and teh other i can get sperads as low as 0.0 pips; no re-quotes, delays nor interventions; scalping, EAs and news trading allowed and STP, DMA and NDD execution
Link to comment
Share on other sites

margin and leverage is interconnected that trading using high leverage it will require a small margin so it would have great potential. so we have to manage our accounts with both

Link to comment
Share on other sites

margin and leverage is interconnected that trading using high leverage it will require a small margin so it would have great potential. so we have to manage our accounts with both

We must understand that forex is risky business. If we use high leverage, the risk will be higher too. Although we need small margin to make order, but it make us be tempted to trade with big lot size

Link to comment
Share on other sites

We must understand that forex is risky business. If we use high leverage, the risk will be higher too. Although we need small margin to make order, but it make us be tempted to trade with big lot size

yes, forex risk is very high as well as profits. therefore we need to minimize the risk to the well if you want to trade with great leverage. MM and RM indispensable

Link to comment
Share on other sites

yes, forex risk is very high as well as profits. therefore we need to minimize the risk to the well if you want to trade with great leverage. MM and RM indispensable

Money management and risk management should be learned since we use demo account. If we do not have money management and risk management, we will not be able to maximize our trading capital which we use for trading

Link to comment
Share on other sites

Personally I give much attention to the amount of the amount I risk in this business but after losing some position that I was right about during analysis I realize the important of money management and ever since I only make use of 2% or 3% of my investment on any pair am trading, the good thing about money management is even give opportunity to make more money on the market.
success in business is the hope of all forex traders. traders who have discipline and maximum trading capacity will greatly help the development of their careers in the forex business.through it will require time and patient but the truth is that it will surely pay off and yield good profit as well. of course, account conditions and order execution is crucial also. I currently trade with a broker that uses ECN technology that reduces latency and the execution is super fast. As well, they have specific Liquidity providers who can handle price action strategies as well as very good conditions (EUUSD 0.2 -0.5). I know these brokers are limited, and you won't find them among the biggest brokers lists as 99% of them are alleged market makers. You'll have to work a little harder and dig a little deeper as I did to find Tickmill.

Link to comment
Share on other sites

Leverage in a broker must be maximized as well as possible if we want to make our trading capital be more maximal in forex. In tenkoFx, i can get 1:500 for trading and it's helpful because trader can start trading with small amount, even there is cent account where trader can start trading with $10 only.

Link to comment
Share on other sites

Margin and leverage is very important for traders to make trades. Now I use the leverage of 1: 500 in TICKMILL using 0:05 lot every trading by using the pair EUR/USD. using the facilities Calculators & FX Quotes, I get a margin 10$ and pip value 0.45$. With the condition spreads as low as 0 makes me comfortable to gain profit in TICKMILL

Link to comment
Share on other sites

  • 3 weeks later...

In this trading platform, leverage is well thought-out as a central pecuniary apparatus that allows to a depositor to cultivate his capital revelation to a level that exceeds the initial investment. For the most part of traders are think, for making profit quickly, it is the only way to trade in high leverage. But, practically, sometimes it not works at all. I always like ton trade in a small leverage for avoiding risk although I am getting 1:400 leverage from my trading platform MxTrade.

Link to comment
Share on other sites

1:500 is maximum leverage in tenkofx. and i also use this leverage for trading. Although it's smaller than other broker, i think it's ideal leverage which we should use. Because it help us to minimize the risk. We will not use high leverage if her doesn has enough margin for making order

Link to comment
Share on other sites

Leverage is expressed as a ratio and is based on the margin requirements required on your account. For example, if your trading account conditions stipulate 2% margin required to trade, this means that to trade the lot size of $100 000 you must have 2% of this amount ($2 000) funded on your trading account. This corresponds to a 500:1 leverage, as $ 100 000 / $ 2 000 = 500:1. Now i am using this leverage in my trading at TICKMILL

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • 👍 Join TopGold.Forum Now

    The Most Welcoming & Trustworthy Earning Online Community

    Join over 25,000 members and 700 businesses on their journey to strike GOLD. 💰🍾👍

    👩 Want to make money online? 
    💼 Represent a company? 

⤴️-Paid Ad- TGF approve this banner. Add your banner here.🔥

×
×
  • Create New...