I wonder what you mean by 100:1 (maintenance)? I trade with them for 1 year and a half and still 50:1 max. I believe 100:1 will make a huge difference to my profit. It should double my long/short power at the same margin; thus, the profit per pip will be double, and so will the overall profit. I think it's a matter of perference to choose 50:1 or 100:1. If possible Oanda should just add 100:1 for pro traders, and then we all can choose the our way (not Oanda way) 50:1 or 100:1.
100:1 maintenance leverage refers to when you'd get a margin call, i.e., automatic position liquidation. See the bottom of this page, under "Margin Calls": http://fxtrade.oanda.com/fxtrade/margin_rules.shtml. It doesn't enable you to increase initial trade size beyond 50:1. Doubling your leverage will double both the profit per pip and the loss per pip. Unless you've found a way to have losses which are, relative to wins, both 1) very few and 2) very small -- in other words, unless your expectancy is extraordinary -- your overall profit will not double and may, in fact, decrease. For instance, it would take an 11.1% gain to come back from a 10% loss, and so on. This is asymmetrical leverage.
Ah thanks apex for explanation anyway. Oanda should just add an 100:1 option for traders who want it, as leverage can be changed in control panel.
OK. EVen with 50:1 lev, oanda will the best of the best when they will integrate streaming news via MNI or other news sources. IMHO
I agree. Even with 50:1 leverage, Oanda is still the best platform. Having checked their API documation and design pattern, I can say their software engineers are super talented!
50:1 should be enough for everyone? unless they're doing some extreme stuff like grid/pool scalper strategies. at 50:1 its: $200 for a 10,000 units mini lot $1/pip $2000 for a 100,000 units standard lot $10/pip Setting a say 10 pip stop loss and 10 pip take profit: A $1000 account can play for +$50/-$50 per trade. A $10,000 account can play for +$500/-$500 per trade. Not bad.