Discussion in 'Forex Trading' started by Baruch, Oct 4, 2003.
Where can we get 200:1 or 400:1?
Seeking high leverage is suicidal. The higher the leverage goes, the lower percentage of capital a true trade should utilize in a market with realistic characteristics such as liquidity. We are talking about a constant here. One up the other down. No trick to push it too far. Otherwise everyone knows account killer.
"LMTC" ... oops ... sorry they went bust a few yrs ago :eek:
In some special situations, when you really can read the market, it would be wonderful with real high leverage. And tight stops...But is 100:1 the most you can get?
look around and you will find 1:200 easily, I hope you wont use real money
NFA regulations take effect Dec. 1, 2003 that will limit leverage to 50:1.
MG Financial has 400:1 for accounts under either 2K or 5K.
I don't know why people make a big deal about high leverage being a bad thing. What matters is how many lots you trade. I trade one $100k lot for every $10k in trading capital at 100:1 margin. Whether or not that's aggressive compared to most I'm not really sure, but I've never blown out my account.
Sorry, but I can't resist repeating what someone next to me said when they read the title of your thread..
"Why not ask for the biggest toilet to flush your money down" ....lol
Just a joke....
I am not encouraging over extending yourself.
But one valid argument for higher leverage is for a well capialized trader to keep money in an insured instrument on the sidelines and liquid, while specualting with a small amount of funds in an uninsured environment.
Keep in mind if your Forex dealer goes broke you lose your funds...so do not keep a high balance.
With the advent of upcoming regulations...many Forex dealers might go by by......
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