Leverage in Forex Trading: How Much Leverage Should I Use? 🤔

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Impact of Leverage on your Trades http://www.financial-spread-betting.com/Leverage.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! how much leverage to use? using too much leverage or too little? this seems like an easy subject but I think its is often overlooked. If you are using too much leverage you will be too focused on your price. There are brokers out there who will give you 200:1, 500:1, some even 1000:1! 10 ticks and the account will move big, 50 ticks and the account might be doubled or wiped out – this is exactly what you don’t want. You don’t want to be continually focused on price. We know how the market moves – even if you get the general direction right you might end up getting stopped out by the intraday noise. You can see how dangerous high leverage/gearing can be.

Leverage magnifies gains and losses. If you are watching every single tick that’s in fact a good indication that something is wrong. Too much leverage won’t allow you any room for error and you will end up getting stopped due to market noise. Smaller account sizes/big positions is a recipe for disaster. If your potential loss then your trade size is too big and you need to dial down your position where you don’t care about any individual losses.

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Comments

GlennBen says:

Someone, please explain to me. What is the difference between using a 1:30 leverage if you're still risking 50% of your account on one trade, to using 1:500 leverage but just risking 1% of your account? Who's going to get wiped out first???

This "high leverage will wipe you out" just doesn't make sense to me. I thought it was about how much of your bankroll you're risking on one trade???

GoVi Forex says:

Thank you for the info.

Nathan Julien says:

Awesome video

Libertad o muerte says:

I think between 20 to 50 is ok

Callan Van Wyk says:

common sence

James Waldner says:

May I ask the recommended leverage please?

Joe Latham says:

good video mate!

Jules Bar says:

I think it depends on what kind of trader a person…..Like me Im a risk taker, so I love more leverage. Stop loss are set anyway.

Don't have time to think about a fancy nickname says:

how do i calculate position size when leverage is used? is it different?

David Rhys Roberts says:

The current trading platform I use offers 200:1 leverage on major currency pairs. ESMA have now proposed a leverage cut to 30:1.
Is this beneficial to me as a retail trader with a small account or not? I try and use my margins and leverages as much as I can to get good returns when I see fit to trade.
Great video

Frank Hernandez says:

High or low leverage doesn’t matter what matters is the lot size if you think otherwise most likely your a losing trader n that’s your excuse.

Ali J says:

Unfortunately, what you said is true, but in this case the road will be very, very long, 🙁
The question is, is there a shortcut?

The Scally Trader says:

This is a great video and he is 100% correct. Risk management is the key to EVERYTHING.

Pellyis Evans says:

I wid father watch these videos in the day rather you posting them at night if you could please my regards to you espallcy
…..

Ginger Gander says:

I try to maximize leverage in trends but only when I'm already in the green…(futures products)… That's how you become a neighborhood hero. 🙂

Nick says:

what is good leverage? 50:1, 100:1 ?…

Jakub Valenta says:

I opened Bitcoin trade on Friday at 3328 one mini. It droped down around 3220 and I was minus $1000,- within 10 minutes. Then it started going up, I closed it at breakeven scared and today it's over 4000. I knew what to do, but… difficult to cope with these emotions.

raj singh says:

Thnx, pls share some live trades

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