How much money do you have on deposit with your FX broker and how much leverage are you effectively using to trade? I'm at 10:1
Leverage means nothing, 10:1, 50:1, 100:1, 200:1, 400:1 is all the same. What counts is the size of position open. Example: A $20,000 mini account with a $10,000 open position and 10:1 leverage or 400:1 leverage will produce the same loss/profit and each pip (EUR/USD) is worth $1.00.
Yes, in absolute terms and in PnL for monthly income, what you say is true. However, my question on leverage is one of risk management. My example is: If there is a 100 pip move against someone in EURUSD and that person is using an effective leverage of 10:1, they would lose 10% of their account size If there is the same 100 pip move against someone but they are using 50:1 of effective leverage, they would lose 50% of their account size. I am curious to see if anyone is using extreme effective leverage (if they would admit to it) and also to bring to attention to new traders who never thought about their effective leverage or risk management for that matter.
With 22 votes cast, 59% describe themselves as trading fx with capital over $50K. Yeah, that sounds about right. Like all ET polls and most online polls, this is a "self-selected sample": of all who come across this thread (a non-representative sample in itself), only those who want to vote, will. Hopefully accurately. It would be nice to see a true representative sample of retail fx traders in general, or even retail fx traders who are also ET members. I would not be surprised at all if well-known market makers' own internal records showed that 80%++ of all their accounts are under $10K, at any given time. Further, a good fraction of those is probably under $2k.