Best Forex leverage for Beginners

Best Forex leverage for Beginners

Leverageis undoubtedly one of the key attractions of the forex market. The major issue here is that most beginner traders intend to select the highest possible leverage. The truth is that higher leverage can be profitable only when it is used correctly. New traders are more likely to give in to the misconception that higher leverage will deliver faster and more significant results. As a result, when a position does not work out in their favour, they have to bear higher losses, resulting in less margin for their next trade. 

Beginner traders should only select the level of leverage they feel most comfortable with. A lower level of leverage, such as 1:10 or 1:50, may be more appropriate if you are conservative and dont like taking risks. Choosing the right forex leverage level allows you to earn more money from your trades and helps you achieve financial stability.

How to use leverage in Day Trading？

Day trading and leverage are likely to go hand in hand. Leverage enables day traders the opportunity to execute trades and earn maximum profits as the day unfolds. 

However, it isn‘t as easy as it seems. Because in day trading, you can’t predict whats going to happen next. It seems like a trend is going your way, and then it suddenly changes downtrend. As day trading involves opening multiple or a single position in one day, using leverage tends to magnify both your gains and losses.  

Its crucial to be smart and attentive to adjust your trade-in relative to currency fluctuations. Setting a stop-loss order can help reduce your trading losses.

Best Leverage for $100 Forex Account

If you are a trader with a balance of $100, you can start with a leverage level of 1:100, as many professional traders recommend this leverage ratio. Trading with 1:100 leverage, you will have a trading capital of $10,000 to open forex currency transactions with 100:1 leverage; your broker provides you 100 dollars for every one dollar you have in your forex account.

With the leverage of 1:100, your broker gives you $100 for every $1 you trade. In simple terms, if your trading balance is $100, then you can trade $10,000 ($100*100). But before you begin trading, you need to manage your risks properly to ensure you do not blow your trading balance.

Trade with the best leverage levels in the market  

Take advantage of the best leverage levels in the Forex market from AximTrade ranging from 1:1000, 1:2000, 1:3000, and up to Infinite leverage. Traders of all types can find a trading option that suits their needs at AximTrade. The advantage of using AximTrades leverage is that you can make significant profits with very little investment. Start investing with a small amount of capital in a CENT account and benefit from the maximum leverage of 1:2000. 

The Infinite leverage account from AximTrade takes traders to new heights by giving them access to an unlimited amount of trading capital. This one-of-a-kind forex account type helps traders achieve their full trading potential by engaging in larger trades with borrowed funds.   

Open your forex account now with AximTrade to enjoy premium trading services and get access to advanced trading features with minimum deposit requirements.