Can you choose what leverage to use before each trade?

Discussion in 'Forex' started by nwoptions, Aug 17, 2020.

  1. GotherL

    GotherL

    You can try setting different hotkeys at 100% or above but I doubt many platforms support it. It would be awesome if my broker had hotkeys to initiate a % of my buying power so I don't have to figure out the math in my head.
     
    Last edited: Aug 17, 2020
    #21     Aug 17, 2020
  2. Tradex

    Tradex

    Leverage is simply the ability to control large amount of capital (or assets) with a very small capital, period.

    If your broker gives you 100 to 1 leverage, then this is the leverage you are using the second you initiate a position, regardless of the size of your capital or your trade.
    Your broker is basically saying : "Here, you can buy $100K worth of Yen with only $1K (margin money), I will loan you the $99K, don't worry about that."

    You go ahead and buy $200K (2 lots) with $2K margin money.
    What is your leverage?
    Answer: 100 to 1, even if you have $10 billions in your account.

    No you cannot, it's only an illusion. You can only change the percentage of money you allocate to each trade (and again, that percentage is NOT leverage).

    Leverage has nothing to do with risk. You can trade with 1,000 to 1 leverage and still risk only 2% on each trade (or any percentage you like).
    YOU control the risk, not the leverage.
     
    Last edited: Aug 18, 2020
    #22     Aug 17, 2020
  3. Why not set it to zero and then you never lose money? :D
     
    #23     Aug 18, 2020
  4. Tradex

    Tradex

    To set your stop to 0% you will need a system with a 100% winning rate and zero transaction costs (not even from the spread).
    And then you are set for life.
     
    Last edited: Aug 18, 2020
    #24     Aug 18, 2020
  5. This also applies to Pepperstone: when you apply for a new (sub-)account you can indicate the leverage for that account. But you can't specify the leverage per trade or position.
     
    #25     Aug 18, 2020
  6. You don't change your leverage, you change your lot/position size.
    The system will take care of the leverage calculation and will tell you if you have maxed out.
    In other words, the bigger your lot size, the more leverage/margin you are going to use.
     
    #26     Aug 18, 2020
    S-Trader likes this.
  7. I guess leverage means different things to different traders. To me leverage is about how much money I must tie up in an account. If my trades do not change and my exposure, risk, sl's.....etc do not change then a higher leverage account would allow me to allocate less money to my system, thus a better yield could be achieved against my capital.

    Es
     
    #27     Sep 7, 2020
    Tradex likes this.
  8. As far as I know, you can change the leverage in your personal area on the account settings page in the Leverage section, once in 24 hours.
     
    #28     Nov 25, 2020
  9. I don't think you can customize the leverage but few brokers give different leverage for forex pair like minor, major forex pair can have different leverage.
     
    #29     Nov 26, 2020
  10. Pegrinn

    Pegrinn

    Of course, leverage sometimes helps a lot, but it seems to me that using it on an ongoing basis is not very wise.
     
    #30     Dec 1, 2020