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How to Choose the Right Leverage in FOREX TRADINGX Trading


rony

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@Standart, sure. That is simply the way I see it. If a trader already has the capital, then there is no point going for a high leverage since the major reason for a leverage system is to increase our capital base and make more reasonable profits as we trade. A lot of nnewbies only look at the amount of money they can make as a result of a high leverage system.

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The trader should be able to understand that when choosing a leverage, he or she can use low leverage or high leverage depending on the type of capital that he or she is having. If you choose a high leverage, you will know how to trade and manage your trade so that you will not lose.

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Nearly each and every man or woman has their exceptional goal, has their specific feeling. To me, to set up incredibly individual leverage is far much better than inquiring peoples' view. bcoz Each and every unique specific particular person has their own individual particular leverage. To me I established my leverage to 1:5000. 

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To get the best out of leverage, the trader has to also cut down the level of risks or the expectations he has for Forex. Leverage has two sides to it and instead of seeing utterly as a place to make the whole money we want to make, we can take it as something that allows us to trade even though we have little capital.

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Leverage is not really the problem what I know is that before a trader make a step to chose a leverage he must understood how to set money managment and risk mgt strategy to be on the safe side of the business its only then that much succees can be gotten

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I see leverage as something the trader has to learn how to choose it. Not everyone can choose a good leverage system for himself and that is why it is better to choose that which is low so you don't run into excess losses when the market didn't favour you.

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Te best way to determine the appropriate leverage in forex trading should we look at the amount of capital we have first and we also look at the ability we have so that we can determine what we will use leverage in forex trading, if we only have a minimum deposit 5 USD ( my broker offer that minimum deposit for micro account ) then we should use the leverage 1:1000

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As far as I know forex trading has substantial risk, the size of the risk can be seen from the leverage used, the greater the leverage used, the greater the risk, but the greater the risk, the possibility of profit would be even greater. For myself, for my trading, I use the maximum leverage is 1: 500 in Armada Markets, and to further minimize the risk, I always use a stop loss and take profit as part of money management that I use.

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for us to choose the right leverage for trading forex is all about our knowledge on forex, if we happen to has a very good knowledge and strategy to trade forex i think to choose leverage will be more easier for us.

 

Leverage must be used wisely. Although we just use small amount for trading. But we still have chance to get maximal result with leverage. For trading, 1:500 is enough for trading in forex. I also just use 1:500 from TenkoFx for trading.

 

Be more than a trader, be a TenkoTrader

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the best way to determine the appropriate leverage in forex trading should we look at the amount of capital we have first and we also look at the ability we have so that we can determine what we will use leverage in forex trading, if we only have a limited capital then we should use the leverage 1:500. now, i am using this leverage in my broker ( Armada Markets )

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u can chose it if u have confrm on yourself if u have Significantly imformation with regard to the forex and we can't make any oversight.if u have know-how then we are able to obtain the income inside the forex .liverage would be the assortment for us to invest from the forex to receive the monney.



 

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well, the best is trade with 1:100 leverage ratio. does not trade by use high leverage since it will make minimum lot size to trade raise high. however, traders has different goal. some choose to use big leverage to enabling them to gain big profit. though trade with small numbers of capital.

 

It depend on pair and the normal volatility what leverage is safe and good. For some pairs 1:100 leverage may be okey but some others which are highly volatile may require lessor leverage like 1:20 or even 1:10. So the issue of leverage is to be decided by taking volatility into consideration, higher leverage on one hand may make us higher profits, but on other may blow our account without making any profit.

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It depend on pair and the normal volatility what leverage is safe and good. For some pairs 1:100 leverage may be okey but some others which are highly volatile may require lessor leverage like 1:20 or even 1:10. So the issue of leverage is to be decided by taking volatility into consideration, higher leverage on one hand may make us higher profits, but on other may blow our account without making any profit.

 

What do volatility got to do with leverage? It does not matter if you have 1:100 leverage or 1:10 leverage. If you trade the same lot size the result is the same. the only difference is the number of lot size that you can use. That's why even if I trade 1:500 the result is the same as when I am trading with 1:50 leverage. All of my accounts regardless its has 1:50 leverage or 1:100 leverage or 1:500 leverage the profit is the same as I use the same lot size.

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Some traders may use high leverage but personally i do not think that a huge leverage is good in trading especially for a newbie.i think we should use small leverage to overcome emotions and to survive in this field for long time.scalpers can use high leverage and high lots but it is really dangerous.

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It is really tough to be able to know or figure out exactly which leverage one should choose or is fine for him. I always prefer to stick to the highest leverage of 1.500 that is available with my broker OctaFX and apart from having high leverage we must also look towards other features as it can be much more important than leverage. I love to get 50% bonus from OctaFX as that helps me even more when using high leverage to do scalping with chance of making profits with very low risk due to spread of just 0.2 pips.

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