How to Choose Leverage for Novice Traders?

[Kelly5]

While learning forex trading, we were advised to invest an initial $10, which is a first step, you invest this amount in case you loose the investment it would not hurt much.

For leverage you are advised to use 1:100, this is because even if the profit will be small losses are also minimal, moreover it is still in the learning process.

That's right. When you choose a smaller leverage when trading the forex market, you tend to last longer and your profits might also not be as big as when you had used bigger leverage, but your account would last you longer as a beginner and not get quickly blown

 

[tyrim88]

Though i am new into the trade and i am still learning,what i observe is that it all depends on your trading account,but it is wise as a newbie to always trade with a lower leverage say 1:10,to minimise your loss,while you learn in the process.

 

[Senator]

Leverage is loan funds from a broker for traders to make trades. Usually brokers provide leverage from 1: 100, 1: 200, 1: 1000, up to 1: infinity. The leverage we choose will be related to the amount of margin the broker will lock when opening the trade. So what do you think?

You're very correct. The type of leverage we also choose affects the level of trading or volume of trading we will be allowed to trade with. If your account balance is a hundred dollar worth, you won't be allowed a larger leverage

 

[GoldenLady]

It will depend on the person's risk appetite. Most beginners would mostly go with the lowest leverage. It won't do yo blow all you account at once before even learning the basics.

 

[Bousine123]

You are perfectly correct my friend. For me I chose the kind of broker I want by the kind of levarage they offer. Some actually offer as much as 1:1000 for trading.

 

[Sotherefore]

People that are just new into trading have to understand that they should rather trade with a lower leverage but in case it is necessary that they choose I will advise them not to go beyond 5x leverage to avoid potential risks of losing your money.

 

[Trexxxy]

Leverages have been a thing in the stock market, a lot of traders make use of the leverage provided by their brokers, they use this this leverages to support their trades and also in cases where the traders needs support in monetary value to continue their trade.

 

[YERUS]

Leverage is loan funds from a broker for traders to make trades. Usually brokers provide leverage from 1: 100, 1: 200, 1: 1000, up to 1: infinity. The leverage we choose will be related to the amount of margin the broker will lock when opening the trade. So what do you think?

I think this leverage depends on the amount you have in your account.
Forex traders should go for leverage that allows them to trade comfortably.

 

[Toyoabasi]

I think in order to curb unnecessary losses, forex traders should have the liberty to choose the leverage that they can work with comfortably.
One can still begin with the 1:10 especially as a novice.

 

[greenie]

The concept of leverage must be well understood and practice before real application. Leverage is like a loan given to a trader to trade that means a leverage of 1000 times the money by 1000 and a pip of loss may consume the traders starting bid. So leverage must be practiced with demo first.

 

[HayKay]

Bro, it's better you choose leverages that have minimal risk even though the returns might not be as big as you wanted; it's better to grow steadily in forex and not blow up everything at once.

 

[Lens]

For a new trader , It is advisable to choose a lower leverage. You don't have to be greedy by choosing a higher leverage because the higher the leverage the higher the risk.

 

[Brendan Watson]

It will rely upon your choices to take benefits. If there should arise an occurrence of need, I have been utilizing my demo account of my broker ForexChief, a regulated broker which is guaranteeing me genuine learning offices free of expense. With this training session, I can utilize my trading abilities to refresh my learning and trading methodologies. Be that as it may, truly, my broker is giving me most minimal zero spread, moderate leverage of 1:400 and opportune exchange executions.

 

[Ofonime6]

Leverages have been a thing in the stock market, a lot of traders make use of the leverage provided by their brokers, they use this this leverages to support their trades and also in cases where the traders needs support in monetary value to continue their trade.

There is nothing wrong using the leverage in the forex market I think that if you use a leverage your margine will be increase accordingly.
And I do hope that people who uses leverage can trade with higher margine.

 

[tray59]

For a new trader , It is advisable to choose a lower leverage. You don't have to be greedy by choosing a higher leverage because the higher the leverage the higher the risk.

for new traders I think that I wont even advice anybody to take leverage if you want to use leverage then why not try and use 100:1 its a good leverage which anyone can trade and have safe trade.

The higher your margine and experience I beleive that is when you will use high leverage.

 

[Lens]

for new traders I think that I wont even advice anybody to take leverage if you want to use leverage then why not try and use 100:1 its a good leverage which anyone can trade and have safe trade.

The higher your margine and experience I beleive that is when you will use high leverage.

Leverage could be a trap by the broker to make you lose all your funds in forex trading, that is why it is very important that you shouldn't use a lower leverage.

 

[HK World]

As a new trader, maintain low levels of leverage. You should consider limiting your leverage to a maximum of 10:1. Or to be really safe, 1:1. Until you become more experienced, financial experts strongly recommend that you trade with a lower ratio.

 

[tray59]

Precisely new trader dont just need high leverage the leverage which you need to chose at the beginning need to be low because your knowledge is not enough if you chose too high leverage bet me you stand a better chance to loss alot of money and your account as a whole

 

[Genie01]

For a developing trader I would advice you to not over_leverage .
By over-leveraging I mean leverages that are greater than 1:500
Leverage carries a risk you might not want to consider.

 

[UsmanAmoyo]

Leverage can be very rewarding to experienced traders that lack sufficient capital.
But the truth is, leverage can cause very big loses if the trader lack the method to go about it.
My opinion though