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Tagged: Leverage in stocks trading
December 16, 2018 at 17:02 #7747jacpin2002Participant
Hi everyone! I wanted to put this question out to the masses to get a feel of what leverage levels everyone is working with. I currently have 1:100 in both my live and demo account. However, I am thinking of going to 1:500. Of course, I would do this is in demo to see how things pan out before I do anything live. I’m thinking of doing this because of using so many EAs. I currently have 83 EAs running in demo right now (after I had to do some cleanup) and I feel like I need to have my available margin higher. Not that I feel like I am in trouble for blowing up the account. I’m just more confident with the use of the EAs to say that I don’t need to put as much of my own capital at risk anymore in a 1:100 leverage and do better (and maybe breathe easier) with a 1:500 leverage. Rest assure that I am not changing my lot size, meaning that over 10 EAs the lot size 0.01 until I get to 10k in my account.
What are your thoughts?December 16, 2018 at 22:34 #7752
recently in Europe there were new regulation changes, and most of the regulated broker had to lower the offered leverage. Imagine how much less they will benefit. Most of them fired many people because of that.
Simply, when higher leverage is used, more people lose money( I am talking about the average “trader” who did not go over even one trading course).
So most of the broker has maximum of 1:50 now…
No doubt you will have smart money management, so trading with higher leverage wont be an issue with you.
Kind regards,December 16, 2018 at 22:36 #7753
I use 1:100 and I feel it is just fine for me.
Jacpin, if you are trading with 0.01, you should not have issues with 1:100 leverage if your account is above or around 1k at least?December 16, 2018 at 22:38 #7755Chris EliotParticipant
I am 1:500 leverage and for me is just fine, as Petko says with good money management should be all fineDecember 17, 2018 at 0:26 #7758jacpin2002Participant
@Petko-That is interesting. I didn’t know that they scaled back on the leverage amounts.
@Haliffa-You’re right. I’m not having any issues with the current 1:100 leverage amount. I’m just always thinking of ways to manage my capital in both it’s use for profit and risk. If I can be more profitable with a higher leverage while still maintaining my current success in profits, then it would be smarter to go with the higher leverage. As I could still make the same profit now, with less trades and thereby less overall risk being in the market. Just throwing out ideas right now to better situate myself for the new year.
@Chris-So true. Good money management is key. I think I might increase my demo to 1:500 during the first week of January to see how that works out for me.December 18, 2018 at 11:43 #7780
Hey Jacpin, Yes, they did which is not a bad thing. brokers will benefit less, and traders will lose less.
Anyway I am talking here about the traders that have no idea what they are doing(90%), no education, no courses, no EAs, nothing.December 18, 2018 at 11:54 #7783
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.
Higher leverage for us, the algo traders, will be useful if we trade many EAs in small account. I did not see a need to higher the leverage, because I trade small number of EAs on relatively big account(according to me).December 20, 2018 at 9:31 #7810
It is all personal choice. It depends on the capital, number of EAs, experience. But Haliffa is correct, always on a Demo first.
Kind regards,December 24, 2018 at 10:15 #7888
I learned this the hard way 🙂December 25, 2018 at 18:30 #7913John MichaelParticipant
I am more conservative on the leverage and I go with 1:20. I think we should not be greedy having a lot of profits. Additional income is what I am looking for.December 26, 2018 at 19:26 #7942
I agree with you John, Having smaller leverage is a tool to avoid greed. Anyway if you have good money management, you can trade with bigger leverage.December 30, 2018 at 11:42 #8066Bob SmithParticipant
I use 1:50 for my manual trading, and I use 1:100 for the Expert Advisors. The margin is not a problem when we trade with many EAs since we buy and sell in the same time.January 1, 2019 at 19:12 #8100
You are right. Bob. When the EAs buy an sell in the account the margin is not an issue. However, there are some brokers that sum the opened trades even they are long and short. Beginner traders should be careful with that.January 3, 2019 at 7:03 #8113dommechParticipant
I’m using 1:500 with multiple 200-500 accountsJanuary 3, 2019 at 11:58 #8118
Quite interesting, Dommech!
I am following similar strategy my self, as I test all the EAs from the different courses. And to avoid mixing it all, I put on different accounts.
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