What Leverage Should I Use For Forex. Multiply your capital by your leverage to get your "buying power". There are three basic trade sizes in forex: a.
So you will need to understand the forex leverage risk before you use forex leverage as part of your trading. The amount of leverage is the ratio of own funds to borrowed funds. It will simplify your leverage and margin concerns.
The most important thing is how much of your account equity you are willing to lose on a trade.
If you've been asking yourself "what leverage should I use in Forex trading", you'll get the definite answer from this video.
To explain to you the difference between a low leverage trading and a high forex leverage trading, I will again use the EUR/USD pair as an example. This post will explain what leverage is, and how much of it you should use. Forex leverage is a double-edged sword.