40 thoughts on “Leverage and Margin in Forex Trading (Podcast Episode 8)

  1. Shalom.
    You have attitude.
    Real attitude.

    I like that. Great energy in your teachings. Thank you from the bottom of my heart.

    Look forward to fine tuning fx skills with your guidance.

  2. Amazing Podcast, as usual. Just one question came to mind. Let's say you make it, you get good and you can make ~15% a year or whatever is realistic. In Eposide 5 you said, you barely can make a living with $100k USD in your trading account. But basically with 1:20 leverage, you would trade $2mil with your $100k and 15% ROI on 2mil would totally make a living. I am probably applying the wrong logic… correct me. 🙂

  3. Hi VP, when I get my algorithm done and tested, I want to get good at it and work for a company like you do. OPM is what I like.

  4. Well, the ESMA ruling only affects the retail traders, not pro’s! You can also choose a Broker from outside the EU, i.e Australia. IC Markets offers up to 1:500 for EU citizens. Use the leverage wisely tho!

  5. You hit the nail on the head with the blog user experience sentiment. I cannot stand it. I think the worst is when I google something and I click a link thinking I might get an answer, I'm actually led to a slideshow (with ads!) that I have to click through just to get to the answer that could've been given in a few quick sentences. Terrible. Good job on your blog. Clean, concise, easy to navigate.

  6. I am from Europe (The Netherlands) and I use a Australian broker. Using a leverage of 1:400. Higher gains but higher risk.

  7. VP. Your video making skills are just great. Professional and clean content. No blah blah. What is knowledge if it is not shared. Thank you for your knowledge.

  8. Could you please clarify the % risk were you mentioned $50k account @ 2% risk with 20:1 leverage then if you only want $25k exposed to the broker with 40:1 leverage but you still have a 2% risk per trade and the size of your trade does not change ? …. Is that of the $50k or the $25k ?

  9. As a professional trader you can still trade with a leverage of 200:1 with most forex brokers in the EU but you have to renounce in writing to any account protection that the regulator of the country concerned offers. For example, trading in the UK, you have to renounce the account protection of GBP 50,000 offered by the Financial Services Compensation Scheme (FSCS) in the event that the firm goes bankrupt.

  10. I'll be honest. The ESMA ruling did me a favour . Not that i need a bunch of tossers in Brussels telling me what to do. What it did do was corral most people into the UK and Euro markets also forex. So thanks …….you tossers!

  11. Leverage is an odd duck concept. Most who come from the stock trading world trade 1:1 or 2:1 meaning they essentially get what they pay for. A greenback for a greenback worth of stock (or a Yen or a Pound…etc.). Period. Welcome to the wild west of 4x trading. Brokers are quite generous and offer us much higher leverage (also called gearing in some circles)…I think I saw it up to 1:1000 a few years back. US brokers use to offer high leverage until the Dodd-Frank act was enacted (decent article if you're interested:)


    Salvation! There are others who are going to save us from ourselves…I'm not going to repeat what VP said in the podcast but if you listen carefully, he not only explains the "what" and "how", but more importantly, the "why". Why…meaning why you should in no way attempt to trade with high leverage. Yes, It is quite attractive to have that satchel of cash at your disposal but whatever rockets up your balance will equally torpedo it to smithereens as well. Be smart – set your leverage to 20:1 and leave it there for the time being. You can always raise it when you're consistent with your trades and you're booking constant wins.

    Ex-USA traders – I see many of you posting your available leverage. Be aware that brokers would absolutely love you to take the highest leverage. What? I can make umpteen dollars/yen/pounds/euros with only the minimum required balance? Sign me up! Enter your trade (leveraged to the hilt), it goes against you a handful of pips but because you didn't understand "the why" and poof…stopped out and your account is a sad string of zeros. Eff'in sucks. Do yourself a favor…listen to the man. Reflect on what he says. You won't regret it.

  12. Wow, I would have liked to know your channel when I started. btw you're content is gold bro !! Notification bell is on for the first time too

  13. There is no more risk because of E S M A and your account cannot become a minus where you owe the broker, you just need to have more money in your account. It will affect sales men selling useless courses because they are aimed at financially challenged dreamers.

  14. Leverage is a strange topic. Technically, leverage itself isnt the issue. Trading big is trading big wether its your money or not. The loss is always yours to bear, always. I think for new traders the biggest reason leverage is so dangerous is because they dont truly understand it until they've lost alot of money, which is mostly because of poor risk management isnt it?

    With that said. I can see how leverage in the extreme is definitely just a bad idea as an account wipeout can occur on one bad trade. But personally i feel 1:50 isnt too bad for novice retail traders, granted their money management and risk is good.

  15. I don't often comment youtube videos but heck, I'm really surprised not only by how transparent you are but also by how clear your messages are. Great combo for a forex teacher! Thanks, full support from France!

  16. I don't often comment youtube videos but heck, I'm really surprised not only by how transparent you are but also by how clear your messages are. Great combo for a forex teacher! Thanks, full support from France!

  17. How come when one opens a trade the Margin is one thing, then later the margin is increased (doubled)? I find this strange.

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