Dear support
I have 7 million and I want to register at FXCM, but the lowest leverage given for deposits under $10,000 is 1:400, what should I do?
@ ridwan gunawan:
Perhaps you mean the highest leverage offered. Leverage of 1:400 is considered high. Lower leverage is usually 1:100 or below.
Are you intending to use higher leverage? For example, 1:500 or even perhaps 1:1000?
If you really want to trade on FXCM, you should choose leverage according to what they provide. In my opinion, leverage of 1:400 is already quite high, and it's common in the market (many trade with that much leverage). Usually it's between 1:200 and 1:500.
Leverage determines the size of the margin. The higher (larger) the leverage, the lower the margin required. Read also: Margin in Forex Trading (2)
But as long as your funds are sufficient, and you trade using a Stop Loss (SL), the leverage doesn't have to be a problem. The important thing is to control your risk. The margin will be returned when you close your position.
Dear Mr. Martin,
I apologize in advance if my explanation is a bit convoluted, so here it is.
Actually, I want a lower leverage of 1:200 but when I submitted a request to lower my leverage, FXCM support told me.
Balances below $10,000 will receive leverage of 1:400.
Leverage cannot be changed.
Leverage will change automatically according to your fund amount.
If your funds are above $10,000, the leverage will be reduced to 1:200.
That's what happened, Mr. Martin, please help me.
@ ridwan gunawan:
In my opinion, if you want to continue trading on FXCM, just follow the rules. In this case, leverage of 1:400 is still okay.
What is important, in my opinion, is that you trade according to a plan (to avoid overtrading), limit risk (with stop loss), and use measured money management (risk/reward ratio greater than 1:1) so that you can be profitable in the long run.
okay thank you mr. martin
To Ridwan Gunawan,
As far as I know, the leverage facility at FXCM brokers does adjust to the amount of funds available. High leverage settings are only available if the funds in the trading account do not exceed USD 10,000. If the funds in the trading account are greater than USD 10,000, then the maximum leverage facility is 1:100.
Therefore, in this case, you just need to follow the existing rules, sir. Regarding the leverage setting, it actually doesn't have much of an impact on trading performance as long as you apply the correct money management and trading system.
Hopefully this can help.