New Leverage Restrictions?

[baddog4x]

the leverage setting of my terminal does not change my risk level. The leverage setting of my terminal simply determines how much margin is required to open a trade.

for example, at my regulated broker which allows a max of 50:1, a 0.01 lot trade of eurusd requires about $22.50 of margin... but the exact same trade at 500:1 will only require 1/10th of the margin to open or $2.25 and the exact same trade at 1000:1 would only require half of that or $1.12

no matter what the leverage setting of my terminal, 0.01 lots of eurusd will earn me a profit or loss of ten cents per pip($0.10 per 0.0001).

with lower leverage, i am always going to be closer to a margin call because most brokers will begin margin calling my trades when my equity is <= margin used.

with higher leverage, i have the ability to open more trades which means more profit/loss which is the equivalent of driving a sports car with lots of horsepower.... dont hit the gas too hard.

higher leverage does not create more risk... the placing of trades creates risk.

technically, risk begins when i deposit into my account and ends when i successfully withdraw all funds.

 

[sebking1986]

the leverage setting of my terminal does not change my risk level. The leverage setting of my terminal simply determines how much margin is required to open a trade.

for example, at my regulated broker which allows a max of 50:1, a 0.01 lot trade of eurusd requires about $22.50 of margin... but the exact same trade at 500:1 will only require 1/10th of the margin to open or $2.25 and the exact same trade at 1000:1 would only require half of that or $1.12

no matter what the leverage setting of my terminal, 0.01 lots of eurusd will earn me a profit or loss of ten cents per pip($0.10 per 0.0001).

with lower leverage, i am always going to be closer to a margin call because most brokers will begin margin calling my trades when my equity is <= margin used.

with higher leverage, i have the ability to open more trades which means more profit/loss which is the equivalent of driving a sports car with lots of horsepower.... dont hit the gas too hard.

higher leverage does not create more risk... the placing of trades creates risk.

technically, risk begins when i deposit into my account and ends when i successfully withdraw all funds.

Thank you! Leverage in of itself doesn't add risk. It'sw the mindset of the trader using it that creates more risk potentially.

 

[baddog4x]

Thank you! Leverage in of itself doesn't add risk. It'sw the mindset of the trader using it that creates more risk potentially.

i get the impression that most people think that a high leverage account is more dangerous just simply because of the high leverage account setting, but this is not my view of the situation at all.

on my current fully regulated U.S. BASED account, 0.22 lots of usdchf earns me approx $2.3770 per pip NO MATTER WHAT MY LEVERAGE IS SET TO. (i think that my profit/loss calculation is correct?)

for example, i am now trading 0.22 lots of usdchf on a 50:1 account it will require that i put up $660.00 of margin to open this position..

if i were trading 500:1, i would only need to put up 1/10th as much, or $66.00 AND I WOULD EARN THE SAME PROFIT/LOSS.

if i were trading 5000:1, i would only need to put up 1/10th of that amount, or $6.60 AND I WOULD EARN THE SAME PROFIT/LOSS.

personally, i would enjoy being able to ONLY PUT UP $6.60 OF MARGIN to earn $2.37 per pip.

i would be able to control an insane amount of buying power, but it would be similar to driving a very fast car... be very careful.

 

[AliForexTalks]

Is retracement same as pullback?

 

[HeavenLeighRob]

I had problems finding a broker with decent leverage as well and it didn't help being from the US. Offshore brokers often have much better options there, but of course that comes with it's own advantages and disadvantages.

 

[juan_01]

every year restricatoins are more and more. now its 1:30 for europe. is it good? not for me.
i dont reccomend you anything. its only your choise. i chose what i need.

 

[Centrirdana]

Is retracement same as pullback?

Actually they are synonyms. They both assume that the downmove (assuming a prior uptrend) is temporary and that the uptrend will eventually resume. Of course, if this assumption proves unfounded and market continues lower, the retracement or pullback will lose that label and instead be labeled as the first leg of a new downtrend. So, I think that you can use both terms in case you want to describe something. There are minor differences which I described above, however they're not so huge to make these terms to be different. Moreover, correction can also be called the same as retracement and pullback, at least I know some traders suppose like that.

 

[TRD Andrew]

If you're don't want to trade with new leverage restrictions, then find broker who can access you trade with the leverage you need.

 

[fxoday]

The risk potentially in high leverage is when a trader uses high leverage recklessly, trade with higher lot size due high leverage allows trader open higher position size because only need smallest margin requirement.

 

[Toibit]

I had problems finding a broker with decent leverage as well and it didn't help being from the US. Offshore brokers often have much better options there, but of course that comes with it's own advantages and disadvantages.

You can try ATC brokers, it accepts US clients and offer 200:1 leverage.