Why you should use leverage in the 1st place?
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Understanding 101 - Double edged sword for leverage.
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Reasonable or not, depends on risk appeitate. For short trading for FX, my leverage is 1:20 , and that's reasonable to me because I do have a stop loss for all my trades. My strategy 3-in-1.
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All trades are "10 credits", to win 20 credits or 10 credits. 3 trade at 1 go (maybe different fx pairs for all 3 trades).
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Trade 1 - Lose 10 credits
Trade 2 - Lose 10 credits
Trade 3 - Win 20 credits
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This way, I do break even, if i predicted 1 trade correctly for simplicy sake.
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Depending on your strategy, leverage might be a good thing, but becareful of the backfire.
Why you should use leverage in the 1st place?
β
Understanding 101 - Double edged sword for leverage.
β
Reasonable or not, depends on risk appeitate. For short trading for FX, my leverage is 1:20 , and that's reasonable to me because I do have a stop loss for all my trades. My strategy 3-in-1.
β
All trades are "10 credits", to win 20 credits or 10 credits. 3 trade at 1 go (maybe different fx pairs for all 3 trades).
β
Trade 1 - Lose 10 credits
Trade 2 - Lose 10 credits
Trade 3 - Win 20 credits
β
This way, I do break even, if i predicted 1 trade correctly for simplicy sake.
β
Depending on your strategy, leverage might be a good thing, but becareful of the backfire.