1:100 Is The Preferred Leverage
Posted on April 4, 2009 by Yohay
Filed Under Forex Basics | 1 Comment
47% of the responses to my poll prefer a leverage of 1:100, a high leverage. What does say about forex traders?
High leverage is common in forex, more than in any other market. Small movements in currencies make big profits, or big losses. Veteran traders told me that the desired leverage is no more than 1:10, and 1:20 in extreme cases.
But most traders take a different stand. It’s no wonder that some brokers offer a leverage of 200 or even 400. There are people who are willing to use such a leverage. If there are buyers, there are sellers.
In the small poll that I made, 47% said 1:100, 17% said 1:50, 14% said “as high as my broker allows me”, 11% said 1:10 and same percentage said 1:5.r
No one went for the “No Leverage” option. Playing safe isn’t the trend in forex trading…
I must say that my poll was quite modest (36 participants at the time of writing), but I do believe that it reflects the current trends in forex trading.
I’ll leave the poll open to answers. If there are many more answers, I’ll write a follow up post.
Happy forex trading, and may you leverage your money to profits and not to losses!
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[...] In a poll that I ran in March, the most popular leverage is 1:100. [...]