Trading Discussion Which leverage would be best for a newbie trader?

[Razor1911]

The forex market is full of surprises. The risk factor and uncertainty is very high here. You never know, in a fraction of second the market may take any turn.

In such highly volatile market, a newbie trader should have courage to trade and sustain. It is not easy for any newbie trader to gain consistent profit from here. There are many things the traders should learn at first, and one of such things is leverage.

What leverage should a newbie choose? I think, it depens upon the inital investment of the trader. If the amount is less than 100$ then the trader can go with 1:500 or higher leverage, but if deposit is around $500, then leverage should be lower around 1:200.

 

[sincerem]

The forex market is full of surprises. The risk factor and uncertainty is very high here. You never know, in a fraction of second the market may take any turn.

In such highly volatile market, a newbie trader should have courage to trade and sustain. It is not easy for any newbie trader to gain consistent profit from here. There are many things the traders should learn at first, and one of such things is leverage.

What leverage should a newbie choose? I think, it depens upon the inital investment of the trader. If the amount is less than 100$ then the trader can go with 1:500 or higher leverage, but if deposit is around $500, then leverage should be lower around 1:200.

If not a forex trader but i got some knowledge around forex trading base on my crypto knowledge. If you want to start up via forex trading you shouldn't start with high leverage, start from small, choose a favourable loss side and profit side. Maybe you can choice a leverage like this 1:100 then put your stop-loss based on the amount you won't like to lose more than.

 

[Ray Martinez]

Broker is an important part in trading. Many traders lose lot of money because of scam broke. They steal trader money and even trade against them. So, trader need to be caution before selecting a broker. Good broker can give trader one step closer to the success in forex trading. I am trading with a good and reliable broker called Forex4you.

 

[Razor1911]

Broker is an important part in trading. Many traders lose lot of money because of scam broke. They steal trader money and even trade against them. So, trader need to be caution before selecting a broker. Good broker can give trader one step closer to the success in forex trading. I am trading with a good and reliable broker called Forex4you.

Scam brokers should be avoided. Whenever we go for joining any brokers, it becomes very important, that we must search for the broker. People mostly avoid research about the broker and invests directly. It is very important that we need to check whether the broker is a regulated or not before depositing any money there. Once deposited, the money will never come back again.

 

[Sotherefore]

If you're new in trading I personally will not advise you to use any leverages because it is not the best but if you are thinking of using I think I should be about x 2 and x5, that should be the highest, it is risky if you are using high leverages and there is possibility of your account being liquidated since you do not understand how to trade confidently

 

[Razor1911]

If you're new in trading I personally will not advise you to use any leverages because it is not the best but if you are thinking of using I think I should be about x 2 and x5, that should be the highest, it is risky if you are using high leverages and there is possibility of your account being liquidated since you do not understand how to trade confidently

You have said the minimum of the leverage. Normally in forex the highest leverage that is provided is 1000x and sometimes 2000x. It looks massive but in forex such high leverage is normal. I would suggest people to take from 50x to 200x at most. Anything beyond that level will be risky and difficult to control when market will move drastically.

 

[btaliat]

Broker is an important part in trading. Many traders lose lot of money because of scam broke. They steal trader money and even trade against them. So, trader need to be caution before selecting a broker. Good broker can give trader one step closer to the success in forex trading. I am trading with a good and reliable broker called Forex4you.

Nice contribution. When I wanted to do forex some years back, the person that wanted to introduce me to it told me clearly my loss and even win depend solely on the broker. It will be easier for newbies to minimize their loss if they are blessed with good brokers. But most time, there are dishonest brokers more than the ones that can be trusted.

 

[Lens1000]

Leverage is the use of borrowed funds to increase one's trading position beyond what would be available from their cash balance alone. Forex traders often use leverage to profit from relatively small price changes in currency pairs. Leverage, however, can amplify both profits as well as losses
Choosing a lower leverage will mean lower loss and lower profit and vice versa.

 

[Sotherefore]

You have said the minimum of the leverage. Normally in forex the highest leverage that is provided is 1000x and sometimes 2000x. It looks massive but in forex such high leverage is normal. I would suggest people to take from 50x to 200x at most. Anything beyond that level will be risky and difficult to control when market will move drastically.

What do you mean ? you mean it is possible for you to trade forex with x 2000 laverages ? this is something I've never heard of in my life because in cryptocurrency I think the highest you can reach in cryptocurrency should be about x 100, I don't think people will ever try using x 1000 to attemp any trade in Forex.

 

[Wisdom01]

I think for me the recommended leverage for traders at the beginning stage is 1;20 , because then the trader is still learning ,even if the trader is on a scalping mode to take out profit very fast , I would still recommend such type of leverage I think tho