what is your leverage when you trade ?

[Ross Bourque]

Leverage is one of the mostly used or heard terms of naïve traders. And leverage makes important criteria for any retail, small scale trader since with the help of leverage he can extend his investment capacity. Leverage is the maximum amount of funds that a forex trader can borrow from his broker against maiden deposit in his trading account with that broker. And for general case, the higher the leverage the better it is for a trader.

But we can’t ignore the reality that leverages at the end of the day are debts on the traders’ hands which they have to repay to the brokers. So; it is good to work with smaller leverage and effective money management policies to ensure that leverage won’t make burden for a trader. I am trading with 1:400, leverage.

 

[scott11]

Leverage is a perfect tool to trade with higher volumes no matter how much money you have in your account. I usually use the leverage of 1:100 which is a sensible option to choose. You need to select the ratio for you according to your money management plan. Thanks!

 

[dvid_]

I use 1:50, but when I open a position I never risk more than 1% of my money. However my risk differs from each trade due to my stop loss placement.

 

[holycow]

Some brokers offer 1:400 on regular accounts and 1:1000 on micro however there are some crazy offers like 1:3000 too which seems pretty unreal. But the leverage, in my opinion, should be kept low in start coz new traders being unaware of the market conditions can also ends up loosing their funds as high leverage means higher damages too.

 

[CryptoatForex]

hey guys ,

what is your leverage when you trade ? it is interesting for me to know about that ?

I use 1:500

 

[Morten]

Leverage is the amount you borrow from your broker. It gives you an opportunity to trade with huge amounts although you have little in your account. It is helpful tool if you have a good strategy for your trades. Leverage has increased the liquidity of the market since financial crisis. Thanks!

 

[bigdolly]

Leverage is the amount you borrow from your broker. It gives you an opportunity to trade with huge amounts although you have little in your account. It is helpful tool if you have a good strategy for your trades. Leverage has increased the liquidity of the market since financial crisis. Thanks!

Leverage led to financial crisis actually. But still what's a safe resonable leverage you advice to choose traders?

 

[baby_trader]

I use 1:50 and not more, because that's the minimum leverage at my broker.

 

[tomhiggs]

Some brokers offer 1:400 on regular accounts and 1:1000 on micro however there are some crazy offers like 1:3000 too which seems pretty unreal. But the leverage, in my opinion, should be kept low in start coz new traders being unaware of the market conditions can also ends up loosing their funds as high leverage means higher damages too.

I like that harsh truth. Higher leverage means higher damages. (y)

 

[audrey collins]

Some brokers offer 1:400 on regular accounts and 1:1000 on micro however there are some crazy offers like 1:3000 too which seems pretty unreal. But the leverage, in my opinion, should be kept low in start coz new traders being unaware of the market conditions can also ends up loosing their funds as high leverage means higher damages too.

Very much true indeed. Some traders, especially the new ones, look at such high leverages and are instantly impressed. They need to understand that leverage is a double-edged weapon. It can work against you just as easily as it works for you. If you earn huge profits then you can lose just as much when things go downhill. It is important to know this and employ a suitable risk management plan/strategy.