Posted 1 year ago
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Mia is quite right, Brian. Focus on limiting your risk per trade. Work backwards from there and calculate the amount of leverage that would be appropriate for you. Don't worry too much about the maximum amount of leverage being offered by your broker. As you have correctly mentioned, higher leverage also means higher amount of capital at risk per trade. You want to ensure that no matter what happens you definitely do not lose a substantial portion of your capital on a single trade.
So, don't even think about the maximum amount of leverage available to you. Most traders that I know hardly use more than 10:1 leverage and many of them use just 5: 1.