always try and take maximum leverage with broker

kwickwool

Well-known member
291 30
Point is this, if you are offered a higher leverage than you need from a broker always take it.

Why? If you are working to a 50:1 leverage typically with good money and risk management and you are offered a 200:1 it means that you can keep 75% of the funds out of the brokers hands, just in case........

Fund you account further if you need to, think of the 75% of your funds in your bank account as part of your trading account, but if you are offered the leverage take it.

Sorry if this sounds pretty obvious as it is, just have not heard this mentioned in a post anywhere.
 
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wackypete2

Legendary member
10,229 2,055
What's the point? If you trade often then you will be "topping up" your account often - each time you get 1 or 2 losses unless you trade with diminishing lot sizes as you get each loss.

If you distrust your broker that much then find a different broker or divide your money between 2 brokers.

Have you tried this yourself with your own money?

Peter
 
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jungles

Guest
614 67
i agree, keeping only what is needed in the brokers account reduces risk

point 5


Point is this, if you are offered a higher leverage than you need from a broker always take it.

Why? If you are working to a 50:1 leverage typically with good money and risk management and you are offered a 200:1 it means that you can keep 75% of the funds out of the brokers hands, just in case........

Fund you account further if you need to, think of the 75% of your funds in your bank account as part of your trading account, but if you are offered the leverage take it.

Sorry if this sounds pretty obvious as it is, just have not heard this mentioned in a post anywhere.
 

kwickwool

Well-known member
291 30
What's the point? If you trade often then you will be "topping up" your account often - each time you get 1 or 2 losses unless you trade with diminishing lot sizes as you get each loss.

If you distrust your broker that much then find a different broker or divide your money between 2 brokers.

Have you tried this yourself with your own money?

Peter

No not tried myself just food for thought, did not mean down to a level where you need to fund with just a couple of losses just to a level that does not mean you have to wait for funds to go through before you can trade again.

just thinking out loud and not something that bothers me really, set my own parameters there type thing and u are right, if you don't trust your broker that much time to move on, although no point in keeping money in there that is never really used or margined, keep it somewhere else.
 
 
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