rather than speak in terms of leverage, the way i do it is that i set my stop-loss on any given day to 3% of my account balance. my best days i've made as much as 6% but average more reasonably about 2% and outway winning to losing days at about 4-1. the leverage i employ though is quite large, i pair trade with total leverage at about 30:1
People seeking high leverage should understand the concept of "Risk of Ruin." Anyone regularly using 100:1 leverage will become a poster child for this definition quite a lot in his life...
Think outside the box for a minute, don't be frightened off by the leverage doomsayers..... Leverage and compounding can be powerful tools, but just like a loaded gun the user needs to know which is the dangerous end or he'll end up shooting himself in the foot! I just wish Oanda would stop playing noobie nursemaid and increase their pathetic 50:1. There are times during the month when I could quite comfortably use >200:1 and still maintain an acceptable risk. A point of interest: some of Soros's money management strategies employ what to the uninitiated would seem like suicidal gearing!
I agree even though I am still discovering fx. From what I see with my demo account, yes there are times when 100:1 would be needed. And I am OK with risk, it's part of my life.
Same with IB - it's hard luck for short term traders who get on a big trend and want to keep adding to a position.
honestly, totally honestly...I would trade with 400-1 or even 600-1 leverage...what Forex brokers offer the highest leverage?...again, totally serious...
how come bucketshops will give you up to 400 to 1 and they only get 30 to 1 at the bank (if that anymore)? BECAUSE ANYONE USING THAT KIND OF LEVERAGE WILL BLOW UP VERY QUICKLY! THANK YOU COME AGAIN!
You are 1 smart dude ! The HIGHER the leverage , the QUICKER the bucketshop can take your money with their games.