Home Forums General Discussion What leverage are you using in your trading? Reply To: What leverage are you using in your trading?

#114350
User AvatarSamuel Jackson
Moderator

Hi Ekene,

This is copied form an earlier post in this topic:

ā€¯Hello, you are absolutely right, Jacpin. The best thing would be to test a Demo account with higher leverage, and you can do it 100% same as your live account. This way you will see what will be the different. basically as Petko said, there will be no difference in the performance, but you will see more free margin to trade with.ā€¯

On a 25k account with 100 leverage you have 2.5 million dollars of total buying power but you donā€™t have to use all that buying power (and definitely shouldnā€™t), but there is nothing wrong with having it and not using it.

Opening for example 20 0.1 lot positions simultaneously requires 200k of buying power. So on a 25k account you could open all these orders with 1:8 leverage and would have zero free margin remaining (ie you couldnā€™t open any more trades) but with 1:100 leverage you will still have over 90% of your free margin remaining to open more trades with if you wanted to.

Bottom line 1:100 leverage isnā€™t risky but trading without good money management is.

 

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