Friday February 8, 2019 - 15:29:08 GMT
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Global-View Forex Trading Insights: Beware of Your Leverage
A question was asked of PAR yesterday on the Forex Forum what leverage was used in tkr trade call with a 100 pip stop. Today PAR made a trade call with a 145 pip stop.
The reason I bring this up is each trader needs to be comfortable with the risk on each trade, especially if following someone’s trade.
For example if PAR is trading with no leverage (1:1) then a 145 pip stop means risk is around 1,2% of capital.
If someone decides to put on the same trade using 10% leverage then risk to capital is 12% for this trade.
Point being is you need to evaluate whether any trade is within your personal risk parameters and never take more risk on a trade that exceeds your threshold.
Jay Meisler, co-founder
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