How much leverage is safe?

Discussion in 'Forex' started by Klein_0, Nov 19, 2023.

  1. Klein_0

    Klein_0

    Let it be $500 capital! How much will be the fitting leverage option for this amount?
     
  2. 20:1 max. But be careful if you go to 21 or above you will blow out for sure. lol
     
    BKR88 likes this.
  3. maxinger

    maxinger

    The higher leverage the better.
    try 100:1 or higher if you can.

    This way, you just put a small capital in your trading account.

    But make sure you have written the maximum amount of lots you are allowed to trade
    on the concrete wall.


    Many people would recommend you to go for as small leverage as possible.
    But then, you might end up putting thousands and thousands of dollars
    in your trading account.

    If you have problem with overtrading,
    Even zero leverage wouldn't save you
     
    Last edited: Nov 19, 2023
    ArnavDeshmukh likes this.
  4. The amount that makes you the most money without ruin. It's different for every strategy. Another way to think about it is if I'm leveraged 100:1, but I have to draw down 5 positions during the intra-trade path, then might as well just pull it back to 15:1 without ever drawing down a position.
     
  5. "Safe" and "leverage" don't belong in the same sentence.
     
    Erebus and engineering like this.
  6. Alexis_0

    Alexis_0

    I think 10:1 leverage will keep you on the safe side. But sometimes you can extend leverage depending on the market condition.
     
  7. None. Leverage=risk.

    If it was safe, would they be loaning you the money? Wouldn't they just invest it themselves at the same leverage?
     
    comagnum likes this.
  8. SmithFX

    SmithFX

    The safety of leverage depends on factors like risk tolerance and asset volatility. Generally, keeping leverage low, around 2:1 or less, is safer. Higher leverage increases potential returns but also amplifies potential losses, requiring careful risk management.
     
    comagnum likes this.
  9. maxinger

    maxinger

    Is high leverage very dangerous?
    =
    Is a sharp knife very dangerous?
     
  10. This dude definitely knows whats up!

    Use as high leverage as you can! Well that would of course depend on the leverage that your broker offers. Mine offer 1:3000 but I have a very simple way to know how to use it. I would calculate my lot size based on the capital that I have without considering the leverage, then I would enter that position using the leverage. This way the only thing that I'm doing is reducing the margin.
    Also I always use take profit and stop loss. If you don't then your gambling not trading.
     
    #10     Jul 11, 2024
    maxinger likes this.