200:1 or 100:1 ?

[ikombe]

I am ready to go live in the beginning of the year. FXCM provides both 200;1 and 100:1 mini accounts, I am inclined to go w/ 200:1 as I can't think of any downsides. Can anyone w/ expertise tell me what potential negatives there could be w/ 200:1?

[anaoxrop]

In the beginer section is a tacky called Advice for novices. It has the answers in the MM posts.

[ikombe]

I have read through this thread, my question I guess is related to trading place, and it isn't actually addressed .

I will start my account w/ $3000 and just trade 1 lot, because I just need to risk 1% per trade due to being a beginner(as much as live trading goes). When I start a 200:1 mini acct, will this effectively change it so that 1 lot(1% of acct w/ a 30 stop) really becomes 2%? You might have the ability to tell that I'm not a math whiz.

[lgox1963]

It's precisely the same, the gap is going to be the margin accessible, while in a 200:1 account you just want $500 available to buy a lot, in a 100:1 account that you want $1,000; accessible means the money isn't being used in other open position.

If in a certain position, you intend your stop loss of let us say, 25 pips, 25 x $10 each pip = 250 risked in the position, that is far more than the risk that you pretend, so, if you mean to open an account using $3,000 that I recomend you open a mini and trade mini lots ($1 per pip).

[adrix_17_boy]

Beginners enjoy the higher leverage.

Indefinitely, just dont blow off your own $ 5K account trading 10 standard lots.

In my novel, leverage has nothing to do with risk. Risk is associated with the amount of lots you exchange. Only the mathematically challenged who dared Elementary Math, will keep telling you that 500:1 is more 5x riskier than 100:1.
1 Lot on 500:1 will have same risk as 1 lot on 100:1.
Nail that through your heads.

I advise that you exchange 1 mini lot per $1K and SL of no more than 100 pips or $100 risk.

At this point, you should consider searching for reputable brokers! That will provide you money when you ask for withdrawal.

[itsbyanka]

100:1 leverage is a lot for many trading egies!
I've 100:1 on my main account and rarely use more than 5 percent of available margin at any 1 time.

[emily85]

This depends upon the account size your beginning with.

Good Luck

[pepeportixxa]

Spread DOESNOT matter you can opted to exchange with 1000:1 or you can chose to exchange with 1:50. What matters is what amount of capital that you risk each trade.and it should be 2%