Best Leverage for Newcomers

[Fx Master]

Many experienced traders said that safe leverage ratio is 1:100and according to me it right because these leverage ratio make us possible to trade with low lot or margin per order. So, with small deposit only , we can start trading and maybe also could cover several loss before get margin call.

 

[Glenn Phillips]

More than 95% novice traders lose their 1st trading capital, so I would suggest low trading leverage like 1:50! Basically, novice traders are too emotional, they like to use high trading lot size and over trading is one of the most common problem for them! In this case, low trading leverage may decrease their trading lot size!

 

[sininfinity]

Leverage can be good or bad depending on how a trader utilizes it. It is better to go on with what experienced traders suggest. Unless one understands how leverage works they better use 1:100 leverage. It will help them damage less.

 

[sininfinity]

These leverage is moderate and I think also can prevent from greediness on trading rather than use highest leverage but can leading them being reckless trader and having tendencies to become greedy.

Yeah you are right. And that is why I said unless one understands how to utilize leverage properly they should listen to those who knows how leverage works. That would be better for them if they listen.

 

[sininfinity]

Yes sometime we also get idea from learning and listen from experienced trader and we can making decision according knowledge and necessity, leverage is useful in forex online trading and this is also as one reason that attract many trader joined forex.

True. If there was no leverage then the forex market would not be attractive to many and many people could not have even afford to enter the market. I myself for one who does not have enough money to trade without leverage. lol

 

[alextrader79]

1:50 will be ok, as for me

 

[alextrader79]

Yeah, small capital and high leverage is normal. As for large accs... not all brokers even offer high leverages if you have, for instance, more than a few thousands of dollars

 

[sininfinity]

Leverage is useful for trader, especially retail trader that only having small capital with high leverage still get opportunity start trading, and now some broker offer micro account as cent account with low deposit, we can trying low risk trading for learning

Without leverage retail traders can not trade in the market. In past when there was no leverage then, there was only big banks and large entities who could trade in this marketplace. Now because of leverage we retail traders can trade. But competetion gave us way too much leverage and many of us try to abuse it and hence suffer the consequences.

 

[sininfinity]

Yes leverage helpful especially for retail trader and now so many retail trader joined on forex because they also want to making money from this business, and maybe forex on future will become more popular because so many company making campaign through many device like as android

It surely will and leverage is one of the reasons. But the leverage is not really good for newbie traders. Their emotions make it worse for them. So small leverage is suggested for them.

 

[The trader]

Maximum traders in Forex like to trade with high leverage for making profit instantly. But traders who make profit consistency , I don’t think they use high leverage. They way I see it. High leverage gives us the benefits not to worry about margin requirements and one less thing to focus on. Abusing leverage can be costly for traders.

 

[sininfinity]

Maximum traders in Forex like to trade with high leverage for making profit instantly. But traders who make profit consistency , I don’t think they use high leverage. They way I see it. High leverage gives us the benefits not to worry about margin requirements and one less thing to focus on. Abusing leverage can be costly for traders.

In my opinion those who make consistently profit they think too much about leverage. They keep their risk under control and leverage does not harm them. It gives them an opportunity to worry about one less thing.

 

[Faal]

Maybe you are right! But I seem, traders need to select this feature of trading according to their trading equity! Depending on high trading leverage is the most common bad habit by the novice traders! Yes, I am also working with 1:100 leverage and my trading equity is 12K.

 

[Nezami]

Actually leverage is an important financial tool which an investor should consider when choosing a broker, basically we the traders fall a great loss by using leverage due to lack of proper trading plan as well real risk managing approach. So it is really important to know how to manage risk when It is time to use at any kinds of leverage.

 

[sininfinity]

Maybe you are right! But I seem, traders need to select this feature of trading according to their trading equity! Depending on high trading leverage is the most common bad habit by the novice traders! Yes, I am also working with 1:100 leverage and my trading equity is 12K.

That's some large amount you got there. For novice traders it is definitely recommended not to use more than 1:100. And there are traders like you who prefer to keep leverage lower. It's a personal preference and I don't judge anyone for using low leverage.

 

[The trader]

For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

 

[Max Trade]

Leverage is an important financial tool for us , but it always contains risk , that’s why before trading with leverage we the traders first of all have to know how to manage risk

 

[Fx Master]

According to me, Leverage is simply the credit offered by the broker to trade higher volume. Leverage is a double edge sword. It can result in huge profit or substantial loss. it allows an investor to grow his market exposure to a level that exceeds the initial investments. It always surrounds risks , so it is more appropriate to acquire proper risk management approach before using it.

 

[Glenn Phillips]

In Forex How much money you can earn by using leverage, it depends on proper trading planning. Now I am more comfortable with 1:100 leverage. Sometimes I use up to leverage 1:500 when I can calculate the market with surely.

 

[Glenn Phillips]

By and large traders who are particularly newcomers always fall a great loss due to non-sense planning and zero risk management plan, so before trading with high leverage it is more important to know how to manage risk.

 

[Tom Latham]

By and large traders who are particularly newcomers always fall a great loss due to non-sense planning and zero risk management plan, so before trading with high leverage it is more important to know how to manage risk.

As well as, what’s the leverage is actually! Because, I have seen many traders are using the high leverage although they have no idea the basic information’s on this feature.