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Tactical usage of leverage

If you trade with a leverage of 1:100 the market would have to move 100 points against you for your position to be wiped out. On the other hand, if you trade with a leverage of 1:400 the market would only have to move 25 points against you for your position to be wiped out.

We recommend first opening a position with a low 1:100 Leverage, and only once you see that you've hit a strong trend, consider opening one with a 1:400 leverage.


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Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don't trade with money you can't afford to lose.
 
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