TYPES OF LEVERAGE

Each broker will provide leverage based on their rules and regulations. The most commonly used levers are 50: 1, 100: 1, 200: 1, and 400: 1.

Leverage 50: 1

50: 1 leverage means that for every $ 1 you have in your account, you can place a $ 50 trade. That means the broker will lend you an additional 49 dollars for the full 50 dollars.

For example, if you deposit $ 500 you will be able to trade up to $ 25,000 in the market using 50: 1 leverage. You don't need to have an amount of $ 25,000, but you'll be able to trade the same amount.

100: 1 leverage ratio

100: 1 leverage means that for every $ 1 you have in your account, you can place a $ 100 trade.
This is the typical and most common leverage used by traders. The minimum deposit to your account is $ 2000 you will be allowed to trade transactions up to $ 200,000 in value.

Leverage 200: 1

200: 1 leverage means that for every $ 1 you have in your account, you can place a trade order worth $ 200.

This is also the typical and most common leverage used by traders, offered on a small account. The minimum deposit to the account must be 300 dollars. With $ 300 you will be able to open positions worth up to $ 60,000.

400: 1 leverage ratio

400: 1 leverage means that for every $ 1 in your account, you can place a $ 400 trade.

Some brokers offer 400: 1 on mini lot accounts. Personally, have to be wary of brokers that offer this kind of leverage. Anyone who deposits $ 300 into an account and uses 400: 1 leverage and trades with high volume will be completely blown away in just a few minutes.

What do professional traders think about leverage?

In every respect, professional traders trade with very low leverage. Keeping your leverage lower will protect your capital when you make a mistake in trading and keep your profits from growing drastically but more steadily. Many professional traders only use 10: 1 or 20: 1 leverage. However, one difficulty for you to imitate them is that you will have to deposit more money and make less profit than what this market draws you.


Regardless of your trading style (swing trading, scalping, day trading, ...), always remember: the leverage provided of all kinds does not mean you have to use it. In general, the lower you use the leverage, the better for you. Furthermore, it takes experience to know when to really use high leverage and when to use low leverage. For new traders, what they draw for you like financial freedom, market superiority lies in leverage, thanks to leverage you get rich, or just deposit a very small amount. , you can trade a few lots, ... for me, following those words, it makes more sense to trade demo with a million-dollar account.

Beware of levers you'll be able to last for a long time.

ADVICE

  1. Trade demo carefully in 3 - 6 months with strict transaction management, capital management, and risk management to make sure your system is effective.
  2. Minimize loss by means of a risk ratio of 1-2% per order. That way, you won't lose too much money on consecutive losing orders.
  3. Lower the leverage as low as possible. Instead of brokers tempting you to set a leverage ratio of 1000: 1, for example, you should lower it to 100: 1 only. With such leverage, any loss you incur will be reduced by 10x. What do you think?
  4. Ready to cut hole. This is said a lot. That means you have to plan in advance, of course, there will be a stop loss part in that plan. Once the price gets to the point where the stop loss is needed, the right thing to do now is to accept the pain and "close" the order.
▶️Telegram : https://t.me/cryptostationchannel
📚Edu Station : https://t.me/educryptostation
⛑Support Form : https://forms.gle/q6J62HiZmoW8pKwK8