Discussion in 'Forex Brokers' started by n00b7r4d3r, Mar 26, 2008.
The results of this poll could give some insight into how risky or safe Oanda is.
I don't see your point.
Nor do I, but mine is 20:1.
My thinking is if everyone uses low leverage then if a major market event were to happen where there is alot of slippage there would not be huge losses that people could not cover leading to a reduced risk of insolvency for Oanda.
Is my thinking flawed?
Not that I really understand the new capital requirements but wouldn't the leverage clients use affect Oanda's minimum capital requirement?
For the trader I'm not sure it makes much difference does it, no-one I know actually uses much more than 4 or 5 but then that's worked out from a risk perspective not a leverage one, leverage is kind of incidental.
I'm not sure what my leverage is set at officially (I never changed it from the default, when I opened my account in 2004), but the largest position I have ever had on at any one time amounted to about 6X my account value in the foreign currency. Would that be 6 to 1?
i use 50 most of the time, but i rarely hold positions for long periods of time. 10 pips is 5% on usd/jpy, don't need to hold long for big profits.
if i was holding positions overnight i wouldn't go over 5:1
I use the same leverage levels I get on HotSpotfx so that trading styles will stay the same and we won't take unnecessary risks just because I have higher leverage on one vs another.
But with Oanda, that leverage is misleading. At 50:1, that's the leverage you need to open a trade, but your effective leverage is 100:1 before you get a margin call. On 20:1, I still can go to 40:1 before margin call.
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