PRIVATE MEMBER AREA
| VIDEO 12 |
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Understanding what Leverage is.
In this video I go over the options of using Leverage
Trading too high of a Leverage is one of the #1 key's of losing all your money! Only experienced traders should ever trade high leverages as high as 1000:1, more common is up to 500:1 Ideal trading leverage size is 50:1. The recommended leverage should be 100:1, but not to exceed 200:1 leverage. What is leverage? In laymans terms look at it like this. Its how much you are borrowing, the base borrow size is depicted by the first set of numbers, ie, 100, 200, 500, 1000 to 1. 100:1 leverage account you are essentially borrowing 100 x more than your purchase amount is. So if EUR/USD market price is at 1.43000 to open the EUR/USD at 1 lot, it will cost you $1,430.00 At 1000:1 it will cost $143.00
This is the actual amount that is removed from your free margin level. It looks good from the outside looking in, doesn't it, knowing that the higher the leverage the cheaper the trade costs to open... however the downside here is becoming complacement and letting greed take over! Do not go there! Trade Smart, not harder! Option 1: Download the video (Right-click and save the MP4 file to your computer) Option 2: Watch the video online *The video may not play in all browsers. If you are unable to play the video, use option #1 to download the video, or try a different browser (Internet Explorer, Chrome, etc.)
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