choice100Double leverage200Double leverage or400Double leverage?

In progressforeign exchangeOne advantage of trading is that it allows customers to choose multiple leverage options, namely100Double leverage200Double leverage400Double leverage, of course, is not that higher leverage is better for customers, but that different types of investors can choose different leverage to maximize their trading advantages. As a beginner, due to not cultivating certain trading habits and patterns, it is ultimately a choice for many people100Double leverage200Double leverage400Double leverage. Regarding this issue, it is necessary to analyze the significance of these different multiples of leverage.

　　100Double leverage was initially popular because many platforms offered this type of leverage, so many people were exposed to it for the first timeForeign exchange transactionsWhen selected100Double leverage, I didn't feel what this relatively low leverage means. Its disadvantage is that it takes up a lot of margin, such as currently opening on any platform100Double leverage,500For a US dollar account, then buy0.1The deposit occupied by the Euro in hand is145About US dollars, imagine that the available margin at this time is355When the trend of the euro is opposite to what the customer has judged, or when it is greatly impacted by the market, with fluctuations of up or down by two to three hundred points, then the position is sold out. That's why many people are turning to it200Double leverage or even higher models.


As seen above,200The significance of double leverage seems to be occupying relatively less margin, objectively speaking, it is indeed so. Let's take a look at the example just now and open a500dollar,200Double leverage, doing0.1The hand occupies about seventy dollars, so the remaining four hundred dollars can withstand more than four hundred points. This reduces a lot of risks. Looking again400By doubling the leverage, half of the margin was reduced, and the available margin was increased. At this point, one hand occupied $35, greatly reducing the risk. But is it really like this? What are the drawbacks of high leverage. from100、200、400Maybe not, but if it's10000Double leverage, occupying1USD deposit, at this time the handling fee is still required3US dollars, in this way, although the transaction100If the US dollar is used as a deposit, the handling fee will need to be spent300US dollars. In this way, it can be seen how terrifying it is, unknowingly spending a lot of transaction fees. That's why higher leverage also has relative drawbacks. So, without spreads and commissions, the higher the leverage, the lower the risk. However, with spreads and commissions added, leverage becomes a double-edged sword, with both advantages and disadvantages. So how to control it should be judged based on long-term trading experience and habits.

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