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Leverage & Contract Size

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Maura

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Forex brokers usually have leverage in forex trading.
The function of leverage, is that a relatively small increase in funds can make transactions with a much larger contract value.

Example:
Brokers who apply 1: 100 leverage, then you only need a fund of $ 100 to make a transaction worth $ 10,000. The $ 100 money is called margin, while the transaction value of $ 10,000 is called Contract Size. That is, the capital you need is only 1%.


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#1 - May 13, 2019, 06:41:11 AM

Goldenfx

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Quote from: Maura on May 13, 2019, 06:41:11 AM
Forex brokers usually have leverage in forex trading.
The function of leverage, is that a relatively small increase in funds can make transactions with a much larger contract value.

Example:
Brokers who apply 1: 100 leverage, then you only need a fund of $ 100 to make a transaction worth $ 10,000. The $ 100 money is called margin, while the transaction value of $ 10,000 is called Contract Size. That is, the capital you need is only 1%.
the advantage of trading with a leverage system is indeed like that, the term we can get capital many times over.
but it's the same if we suffer losses, the value will also be many times over.
so it's wise to use leverage and lots, because if you don't calculate it, you might experience MC.
#2 - May 13, 2019, 08:14:31 AM

Maura

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Quote from: Goldenfx on May 13, 2019, 08:14:31 AM
the advantage of trading with a leverage system is indeed like that, the term we can get capital many times over.
but it's the same if we suffer losses, the value will also be many times over.
so it's wise to use leverage and lots, because if you don't calculate it, you might experience MC.
therefore I just want to share the leverage and size contract education information so that novices have nothing wrong with their understanding and misuse.
#3 - May 13, 2019, 08:54:44 AM

kastara

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leverage is a trap from a broker. the more leverage we use, the more greedy we will be. be careful when using levarage
#4 - May 13, 2019, 01:05:08 PM

Lisnawati

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Quote from: kastara on May 13, 2019, 01:05:08 PM
leverage is a trap from a broker. the more leverage we use, the more greedy we will be. be careful when using levarage
in my opinion it's not a trap.
depending on how we choose the leverage, it must always be adjusted between leverage and our capital.
#5 - May 13, 2019, 01:08:05 PM

kastara

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Quote from: Lisnawati on May 13, 2019, 01:08:05 PM
in my opinion it's not a trap.
depending on how we choose the leverage, it must always be adjusted between leverage and our capital.
okay Miss ... each person has a different mind but for me lavarage is a trap.
#6 - May 13, 2019, 01:15:37 PM

Goldenfx

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Quote from: Maura on May 13, 2019, 08:54:44 AM
therefore I just want to share the leverage and size contract education information so that novices have nothing wrong with their understanding and misuse.
indeed basic information like this that sometimes traders do not care, especially for beginner traders is very useful.
#7 - May 13, 2019, 01:34:03 PM

Flamboy

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Quote from: Maura on May 13, 2019, 06:41:11 AM
Forex brokers usually have leverage in forex trading.
The function of leverage, is that a relatively small increase in funds can make transactions with a much larger contract value.

Example:
Brokers who apply 1: 100 leverage, then you only need a fund of $ 100 to make a transaction worth $ 10,000. The $ 100 money is called margin, while the transaction value of $ 10,000 is called Contract Size. That is, the capital you need is only 1%.
leverage and margin usage here must be known and understood by traders in order to be able to apply MM properly.
#8 - May 13, 2019, 01:34:20 PM

Robert

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Quote from: Flamboy on May 13, 2019, 01:34:20 PM
leverage and margin usage here must be known and understood by traders in order to be able to apply MM properly.
using 1: 1000 leverage in my opinion less challenging I prefer 1: 500 leverage. profit is bigger and the MM level is not too high.
#9 - May 13, 2019, 01:55:19 PM

Surya Kencana

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Quote from: Robert on May 13, 2019, 01:55:19 PM
using 1: 1000 leverage in my opinion less challenging I prefer 1: 500 leverage. profit is bigger and the MM level is not too high.
if I prefer 1: 200 leverage, in my opinion it is more ideal with moderate capital.
#10 - May 13, 2019, 02:41:10 PM

gupe njb

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Quote from: Surya Kencana on May 13, 2019, 02:41:10 PM
if I prefer 1: 200 leverage, in my opinion it is more ideal with moderate capital.
determine the leverage is better calculated first how much capital you have, leverage should not be too large or too small.
and also see the contract size of the broker first, because each broker has a different contract size.
#11 - May 13, 2019, 03:42:33 PM

alvaro

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I usually use 1: 500 leverage because for me this is standard levarage
#12 - May 14, 2019, 02:31:16 PM

dessi

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Quote from: Maura on May 13, 2019, 06:41:11 AM
Forex brokers usually have leverage in forex trading.
The function of leverage, is that a relatively small increase in funds can make transactions with a much larger contract value.

Example:
Brokers who apply 1: 100 leverage, then you only need a fund of $ 100 to make a transaction worth $ 10,000. The $ 100 money is called margin, while the transaction value of $ 10,000 is called Contract Size. That is, the capital you need is only 1%.
But if it is associated with leverage, a contract size or lot will require a larger margin if the leverage is smaller and it is not free.
#13 - May 14, 2019, 04:00:12 PM

Misca

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Quote from: Maura on May 13, 2019, 06:41:11 AM
Forex brokers usually have leverage in forex trading.
The function of leverage, is that a relatively small increase in funds can make transactions with a much larger contract value.

Example:
Brokers who apply 1: 100 leverage, then you only need a fund of $ 100 to make a transaction worth $ 10,000. The $ 100 money is called margin, while the transaction value of $ 10,000 is called Contract Size. That is, the capital you need is only 1%.
if using 1: 300 leverage with a capital of $ 500, I can trade like using $ 15,000. very large can double the capital. can profit a lot and also can lose a lot.
#14 - May 15, 2019, 12:51:38 AM

fathir

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on one side leverage can be an advantage, but on the other hand levarage can be an enemy
#15 - May 15, 2019, 05:36:27 AM
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