Leverage Level
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Thread: Leverage Level

  1. #1
    Hi,
    I am new to Frex.
    I learnt that alot of brokers offer leverage from 10:1 to 400:1
    On what does the leverage amount rely?
    It is cedit histor
    it's libilty
    it's the lot size
    it is...?
    Thanks

  2. #2
    Your amount of leverage determines margin is obligatory to obtain a lot. For instance, a 10,000 size lot of EURUSD will require up only $31.94 of your margin using 400:1 leverage. Together with 50:1 leverage, it will take up $255.57 of your margin. So lower margin means you may purchase less lots, which generally means less risk. Higher marging means you may make money faster, but it is also possible to lose it faster.


    Hope that helps,

  3. #3
    Sorry, I forgot to answer your other questions. When I signed up for my account, they did not conduct a credit check ( as far as I understand ). You select the leverage level (and therefore quantity of risk) you believe that you can handle. You also select the lot size once you sign up on your account.

  4. #4
    Thanks, for the reply.lt;?Xml:namespace prefix = o ns = urn:schemas-microsoft-comfficeffice /gt;lt;ogt;lt;/ogt;

    Thus, there's no doubt concerning the leverage rate. I could select whatever is offered by the broker when I set-up the account.lt;ogt;lt;/ogt;

    Can I change this rate later? I guess .

  5. #5
    I'm only speaking from my experience, but with FXSol you are able to change the leverage level and lot size anytime you want after your account is up and running, although I have never completed.

  6. #6
    Thanks, that is what I Am Searching for

  7. #7
    How you can calculate the margin utilized in leverage...?

    Due

  8. #8
    FXSol includes a built in margin calculator on their platform. However, I understand not everyone uses them like I do. So, you can go http://www.oanda.com/products/fxmath/margin.shtml and attempt to use this. It's somewhat confusing, but the number of units is the lot size * number of lots, along with the margin ratio is the leverage. For some reason, this calculator only goes around 50:1. I've 200:1 leverage, so that I take the result from the 50:1 and divide it by 4.


    Hope that helps,

  9. #9
    Quote Originally Posted by ;
    Hello,
    I'm new to Frex.
    I learnt that alot of brokers provide leverage from 10:1 to 400:1
    On what does the leverage level rely?
    It's cedit histor
    It is libilty
    It is the lot size
    it's...?
    Thanks
    The elderly men online forum will advise you to begin with micro-lots (400:1) and stay with that until your fund is around $25000.
    Calculate your lot size by first establishing your risk onto any commerce ie ask yourself how many pips do I lose here.
    Once you've worked out your stop loss this will give you how many lots you can exchange and NOT exceed 1 percent of your account for this trade.
    If you're seeking to exchange 2 pairs at precisely the exact same time you should only risk 0.5% on every trade.
    Peter

  10. #10
    Therefore that the margin utilized equals Lot price x Curent currency price divided by the leverage ratio...(?)


    And now somewhat irelevant query on the topic... what's the Volume: refering into at the MetaTrader platform (it reveals numbers from 0.10 to 8)? Is it the lot dimensions. . ? In what ammount is it applied into...?

    Sorry if sounding overly dumb about all this... Its because I am:-)

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