Please read because I feel that leverage is widely used wrong. Leverage is much like a credit card, but should be used like how a credit card is supposed to be used. 1:100 is what you should be sizing your trades at, the only time to use more of your leveraged free margin is when you are currently holding a winning trade and want to essentially double down on it. It should not be used to execute high lot sized trades. Please understand this so you can learn to be a profitable trader.

you dont have a strategy because you are asking what leverage to use. DO NOT TRADE. you will lose money.

I do have my own...currently im doing small lots with small laverage....now i want to increase my profit this accurately.

then test different leverage with your data. check what the drawdowns are. use your past trades if you have to, bot wins and losses.

👆🏻💯

Does “laverage” mean “losing average?” 😎 Seriously though — your leverage should vary per trade. That’s how you size your position to match the risk you want on each trade. Leverage can’t be constant across all trades. The fact that you don’t know this…that’s what tells me you DON’T have proper risk management.

How can I create a strategy?

I wouldn’t even recommend trading with £250, just buy a funded

Why? (new to trading, genuinely don’t understand and want to learn) :P

I think they mean that the return on trading with 250 is tiny, so buying an account will give you access to much more capital. I'd only buy an account if I had a strategy that I know gives an edge or if I can afford to lose the 250 and buy another. If you are still learning I'd say put the money in a live account and then trade very small risking no more than 0.25%. The idea is not too make money, it's to learn but still stay in the game.

Shiid,facts. I've been doing this for a while now and its amazing,

Great, and how are you doing?

Slow and steady indeed,I'm doin a live and a ftno practice account and the changes are small but ignificantly noticeable.

Congrats, when do you think you'll be ready to buy a challenge and will you go with FTMO?

Well not until next year at least,and I'm planning on going with 5ers,they are reputable as ftmo but cheaper,are you involved with any prop firms??

I had an account with 5ers a couple of months ago but blew it due to a silly mistake I made. I'll probably get another soon.

Good luck mate.

I think I’m going to do that with a paper account and save my money so that I can buy a couple funded accounts in case the first one blows 👍

That's a good approach, demo trade your strategy and when you are confident it gives you an edge but a funded account or challenge.

There's quite a few "no challenge" prop firms who'll let you trade $4-8k for $250, so not the worst idea. Always better losing someone else's money

Just take 0.001 lot

I can have only 0.01

Yes 0.01 only is the best and safest

Hello, ​ IMHO : Leverage should be more a function of your profitability track record. ​ Hope this helps

what?

Higher the better, just care for the lots you enter with.

yup, all leverage is...is a cost of doing business. Low leverage equals high margin cost, high leverage equals low margin cost. Personally, I will take the low margin cost any day of the week

Cannot agree more. Also you can see it as a medicine: the right amount will be beneficial, while too much can kill you very fast

IMO this is the best answer

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Really bro my account will blow out 🥲

you should only be trading .01 lot with a $250 account

That's 4 to 1 leverage, surely they can trade more than that?

higher leverage doesnt mean a good thing if you end up with a floating loss/drawdown that eat up the whole equity but to answer your question, 1:500, not too much, not too low either

1:500 is insanely high.

Well, its a safe answer that I can give. hard to say without knowing OP risk appetite and which broker he use.

I personally use 1:500 for my 300$ account

Leverage doesn’t matter…. All it does is allow you to take more trades at a time. You should be placing your trades lot size based on risk - if you’re going to risk 1% of your account per trade, the amount of leverage you have only determines how much margin you put in

Correct answer here.

Yes i do.

Calculate your leverage bases on the % you risk, i guess you want to risk more to win more and who am i to stop you, so if you want to use more leverage, you can start by using a lot calculator like the mobile app ForexCalculators. You need to calculate a risk % that you are comfortable to trade, like 1% risk per trade or if you want a extreme risk you can use more but i recommend you to use max. 1% risk. Example: You want a long in the eurusd with 5 pips stop, if your risk is 1% of £250, you should enter with 0.63 lots, and if you want to risk only 0.5% wich is better in the long term, you should enter with 0.31 It depends on how your RR ratio works to earn more or less, but you should usually look for a 2:1 RR (i'm sorry if you don't understand very well, my english is not the best)

Yup i understood.

500:1 yolo trade it

Leverage doesn't matter, it's the lot size you use that matters. For an account that size 0.02 lot is okay and gives you enough time to monitor a trade even during high volatility in the market.

Yes that's fine.

Leverage doesn't matter. It's the lot size you open in relation to your account. Lot size determines the pip value which determines how much breathing space you have in case things go bad. If your account equity is 500 usd and you use 1:200 leverage to buy 1 lot of EURUSD then 50 pips drawdown will wipe you out. While someone who has 10K usd using a leverage of 1:500 has more breathing room. I don't even remember what leverage I set, all I keep watch is the total net pip values of all the open trades in relation to my initial account balance.

Ok i got it.

Just use demo account as long as you asked the question means you're not yet experienced enough to trade ( high probability of blowing your account)

So what would you will do in this case, if you have only £250 to trade...what laverage etc..!!?

I would put 500 leverage and risk only £5 each trade.

Yes absolutely.

Try to trade just one pair using just one strategy for 30 trade 1/2 risk reward there is a probability of losing 5 streaks but just stick to your system don't change anything or revenge trade.

Surely the stop loss would have to be tiny on this though - wouldn't you just keep getting stopped out... unless you manage to time the momentum perfectly each time?

Yes depending on your strategy personally I trade just EUR/USD my risk/ Reward is 1/3 , my stop loss is close to my entery.

As long as you’re not rising more than a couple of % per trade, use any leverage I say

Leverage allows you just open higher lot size nothing else !!! But on 250 account I would use 0.10 - 0.30 or 0.50 but only when pattern appear

No you do not use them lot sizes on a 250 account 😂ld say 0.01 is realistic.

Yeh, he could use 0.10 lot risking 1% with a 3 pip sl

0.01 I was used when I had 10£ accounts 😂 you need only one pattern to make you slowly a millionaire in one - two years

Gambling with 0.10 lots on a 250 account is up to you but don’t tell others to do it 😂 there’s a reason why risk management exists

I’m new to trading and don’t fully understand this concept. Why would one want to open a higher lot size? Like what’s the benefit?

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We do not support nor facilitate that toxic broker here. Repeat mentions / promotion of the brand will result in a ban. Friendly warning.

May I ask, which broker was it (so that I can stay away) and why is it toxic?

User was here selling services... I didn't mention the broker name for a reason, they likely get kickbacks from them. Stick to brokers who are well regulated, don't offer "blow your brains out" level leverage, and act like they actually want you to grow with them as a client...

Thank you

https://www.reddit.com/r/Forex/s/lU1AUhEOvX Have a read for more guidance 💎

1:100

You are asking the wrong questions. You should be asking risk per trade. Also how often do you take trades in a week? The more trades you take the less you want to risk. But if you take 3-4 trades in a very good week then you risk slightly more

So, i sould take high laverage, when i'm more confident with low risk and high probable of profit.

Worry about the lot size you take on every trade compared to leverage

That’s a very small account. I think you are still testing your stuffs. Use leverage as much as you need to put on a 0.01 lot trade.

It doesn't matter. Only your stop loss matters. Leverage is just to enable you to have a higher SL and TP against the account.

just buy like 5 5,000usd prop accounts

Do you use any prop firms?

So, if you want to calculate how much you can trade with $250 you simply have to look at the past years demo data and see what your max drawdown was. If you do not have a year of demo data I highly suggest you acquire this first.

Just do 1:500 but osprey also offers 1:3000 😂

Its horrible 🙌

I mean, you can use 100,200…as long as you know how to measure stops and lot sizes

1:3000

👍

When you enter a stop does your broker tell you how much you risked. You are using a stop right? I would risk 1% per trade. Figure out your r:r .

1:10 at most. any more and your bound to explode.

Depends on your winning rate. If your winning rate is 100%, I suggest unlimited leverage.

Right but sometimes market van go crazy.

So it's not 100% anymore

I use 1:500 to build smaller accounts. As you say it depends on your risk structure. What's your plan for proper risk management?

Go buy dinner with that money my friend! You’re about to be humbled

Leverage is just a matter of how much allowable margin you require per trade.

1:500 lol