Forex leverage and margin explained. The most simple explanation on YouTube.
ฝัง
- เผยแพร่เมื่อ 22 ก.ค. 2024
- Understanding forex leverage and margins can be tricky as a new forex trader. I personally got tired of buying houses every time I wanted to learn about leverage... So, here is the information as it should be taught, as simple as I possibly could explain it.
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My Preferred Brokers:
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vaultmarketsma.syntellicore.c...
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My name is Wikus de Lange and I am a full time forex trader/ Nasdaq day trader and entrepreneur. I teach people how to trade Nasdaq / Nasdaq100 and how to profit from understanding and implementing the basics of the forex trade.
In all my Nasdaq weekly analysis videos you will find tons of Nasdaq trading strategies as well as Nasdaq trading secrets.
My Nasdaq forecast and analysis is always based on the basics of trading. Implementing technical analysis strategies on the chart.
To learn how to trade Nasdaq and understand my Nasdaq trading strategy in full, you can visit my website www.wiktrading.com or join my free and open Telegram group (link below).
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My Preferred Brokers:
my.trade245.com/live_signup?s...
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Disclaimer:
The information contained on this TH-cam channel and the resources available for download or viewing through this channel and any other WikTrading platform, shared in WikTrading social media or social messenger groups are for educational and informational purposes only and should in NO instance be viewed as financial advice.
#nasdaq #leverage #margin
I had been having a difficulty with understanding this topic & searching the whole of TH-cam.., your video is the only one that made me understand it..! Thank you.
Same here! Thanks Trade Nasnaq for your detailed explanation! Your video is literally the only one talks about combination of leverage and lot size
x2
Exactly
Same here with me too. I was also facing difficulty to understand this calculations and having searching the whole TH-cam for a precise elaborated explanation your video is the only one that gave me the correct knowledge. Thank you very much.
This really is the most simplest explanation on TH-cam about how leverage works. Thanks
Very very clear, this is the best leverage explanation I have ever seen, since my 4yrs into forex. You killed it man🙌🙌
You explain this very well I’ll recommend your video to every beginner I come across👏🏾. Thank you for sharing with us newbies… I will definitely rewatch your video.
Explanation i needed all my life...Thank you 🙏
The best video I have ever watched on this topic.
Wow you’ve explained this so clearly 🙌🙌🔥
You are the best teacher.
You took a critical subject and make it easy to understand.
Thank you so much❤❤❤
Thank u, the confusion since 3years cleared
I am a new to day trading and I liked the way you explained it
Thank you so much sir for this.
Highly insightful
U are truly gifted I grasped everything very very well thank uuu
U killed it 🙌🏾best ever and simple
Best video for explaining leverage👌🏽
Excellent explanation. Thank you!
thanks bro for most clear explanation regarding leverage... now i can calculate lot size to used.. 😊😊😊
Thank you so much, I fully understood the leverage and it's relationship with the balance. It was always a grey area for me. now it is not. :)
Love it. Easy and very Quick to learn thx.
nice video bro. I was searching this video on all over you tube.
Great video! Easy to understand!
U explain it very well, Good job Boy
One of the best video... Easily understood.... Thank you so much brother....,👏👏👏
Massive pleasure brother!
Very helpful video mate.
Very good explanation my guy❤
Amazing work
Nice information❤
Wow this video is everything
This is very helpful 😮
Great Stuff ! Keep it coming, I trust some of us can turn things around from being Broke AF lol
God sent. Thank you
Best explanation on the topic ever! If you don't understand this, you probably won't understand any other one.
When do u enter a trade?
simple yet very informative! +1sub like
I hope somebody can come and help me real quick here. So if I'm hearing this correctly, when you have the 1:100 when you use lot 0.1 that's full margin since that amounts to the base currency which is the 10K?
What’s standard vs cent account??
thank you so much
wonderful
brill mate
My current broker has a margin of 1:2000 but I with my $100 account I was only able to throw in two 0.10 lots so is that not day light robbery?
GOOD🤩🤩
Hi bro we need more videos
With leverage is everything I esrn from closing a particular position mine or do a pay a percentage for essentially borrowing the money?
You usually do not pay interest in the leverage used. Most brokers make their share from each trade by utilizing the spread of the currency pair or they will literally charge you commission on a trade.
Hey :) thank you very much for your video, it’s really informative and easy to understand 😊 I have a question about the leverage tho, I hope you can help me. I am so confused as to how the brokers can help the investors with such amounts of money and the investors don’t have to pay it back.. is there any catch into it? Do they actually take the money that corresponds to them in the same trade?
And another thing is, how risky is to use big leverage like 1:500? That’s a lot of money being played around with that isn’t really ours, what exactly can the risk be? As for the lots, why would someone offer the possibility of buying a 0,01 lot when it doesn’t give as much profit as, for example, a 0,1 one? I mean if we have the right strategies, we would always aim for a higher profit and not a lower one
I have a ,1000 dollars account with 1:1 leverage and they dont let me open 100 dollars trade just 7 dollars at maximum
Thank you so much for this bro. What leverage can I use for a $10 account?
It depends on your broker, not your account balance.
Your margin will be determined by your leverage and then your account balance.
Can you please help me here I'm new on forex.. I don't understand why I cant buy standard lot if I have $100 account ( I believe that I can since I have 10pips before my account balance goes to zero, can you please explain that, )
Hi.
Please send me a whatsapp or telegram message on (+27)061 465 9740 so that I can hrlp you.
it was clear sir but my broker offered me the leverage of 1:500 and my account type is micro not standard and i funded my account with 200 ZAR so what slot to use ?
It depends on the risk you want to take.
Open the smallest lot size and gain experience trading that size. After a while you will start to understand your risk appetite and learn to calculate the amount of lots you would like to take on a specific trade. Remember, ONLY risk what you can afford to lose.
As we know, leverage plays a big role in lot size and positions.
My question is, does leverage affect your Pips and earnings? For example; leverage 1:5, Pips:100 and Lot:1 He gives you $500. While the leverage is 1:100, Pips: 100 and Lot:1 gives you: $1000. Is it like this or is it different? Thank you
Hi Abdullah. Leverage does not affect your pips directly no. However, leverage does affect the lot size and amount you can open and then in turn affects the profit/loss per pip in your trade. If your account has enough margin/capital to open the 1:5 account's trade as you mentioned above and you open the exact same lot size on the 1:100 account you will earn the same amount of profit/loss.
I hope this answeres your question. Thanks for reaching out ;)
Hi. My maximum leverage is 1:30. On icmarket. Why?
It is unfortunately what they offer. If you want a higher amount of leverage you can look for a different broker that can provide it.
I WANT AN EXAMPLE FOR 400:1 LEVERAGE AND THE MARGIN 10 DOLLARS: HOW IS THE MATH ? DO I LOSE THE TRADE WHEN IT APPEARS A CHANGE (AGAINST ME) OF WHAT PERCENTAGE ? 0.25% BUT HOW MUCH IS THE PROFIT FOR THIS TINY VARIATION OF 0.25% . THAT COULD BE USEFUL FOR A STRONG UPTRAND OR DOWNTREND- STAY ONLY 5 MINUTES IN THE MARKET. I TRY TO DO THE MATH : 10+400 =410 DOLLARS WOULD BE THE EXPOSURE OF THE TRADE? 400/0.25=100 DOLLARS PROFIT BEFORE THE BROKER TAKES ITS PART. HOW MUCH DO I HAVE TO RETURN TO THE BROKER AND HOW MUCH DO I TAKE PROFIT ??
How do I solve not enough funds
Tricky question as to what answer you are expecting.
I have two different answers.
1 - Deposit a larger amount into your trading account as the margin (minimum amount needed) expected by your broker is more than what you currently have in your account.
2 - ONLY trade with money you are willing and able to lose. If you do not have such money, get another income stream by using your mind, body and hands and then after making enough to risk after that deposit that into your trading account.
Is it ok to use 1:500 laverage i just started with forex and it gives that option to me so if i use 1:500 i wont lose or win more money just i can do more tradings ? Cuz i watched so many videos about lVerage and till now you are the simply most understood one !!! THNX
Hi Ana. Yes, the difference is that you can open more and bigger lot sizes with it. That holds more risks as you can clear your account faster, and then also more possibilities for more profits if the trade goes in your favor.
I personally trade with 400 - 500 and then make double sure I enter my SL's at the correct areas and also not over leverage my trades with to high lot sizes.
@@tradenasdaq-wiktrading894 so what do u say should i use 500:1 or sth else? I am new to forex and wanted your opinion?
@@anasalihu7480 Start with 500. Then enter the minimum amount needed for a single 0.01 lot size in your account and get used to trading. That will ensure you never loose more than what you can afford. Later as you gain experience you can up the lot sizes and lower leverage if needed with different brokers.
@@tradenasdaq-wiktrading894 thank u !!!🥳🥳🥳
@@anasalihu7480 My pleasure! Let me know if you need more help in the future!
I have one very specific situation.. I have a broker that offers me 1:500 leverage, where with 1000$ I open lots of 0,01 in size. If I move to another broker that offers me 1:30 leverage, with the same capital (1000$) how big should the lot sizes be in order to have the same floating % risk?
Hi Lucarusso. I would love to assist you with the question, but struggling to understand it correctly. Will you perhaps word it different or explain a bit more in detail so that I can understand it better? Thanks!
@@tradenasdaq-wiktrading894
the two brokers I use have a preset leverage of 1:500.
So, if I have €1000 in my account, I have a purchasing power of €500,000. In this scenario I buy lots sized 0.01.
If, still with €1000, I were to use a leverage of 1:20 changing broker (thus a purchasing power of €20,000),
The lot size should be 500/20 = 25, therefore 0.01x25=0.25
Or 20/500 = 0.04, 0.01x0.04=0.0004, so it wouldn't be possible without leverage?
I would like to maintain the same risk float.
thanks bro, and by the way where are you from?
My pleasure bud!
I am based in Cape Town, South Africa.
@@tradenasdaq-wiktrading894 cool
Not everyone is broke because you're broke
Lol... Always has to be someone with negative energy. Hope your life turns and brings some positive vibes to your mind! :D
Hey, I'm using TRADE245 broker, this is the information inwas searching for but there something doesn't correlate here. Last week i tried to open an trade with 0.16 on 1:500 leverage account and my account balance was $124 but the trade couldn't open, the broker said i had insufficient capital
The answer lies within what account type you have with them. They offer standard and VIP tipe accounts which differ in the contract sizes and margin levels. Send them an email and ask them what is the margin on the account you have for a 0.01 lot trade on the pair you wanted to trade on.
Hi kindly share your telegram or whats-app link. i need you as my mentor in understanding Forex calculations