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High Leverage is the Killer πŸ’€ Video

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High Leverage is the Killer http://www.financial-spread-betting.com/strategies/strategies-tips.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! I want to talk about leverage, account size and the type of trading account you can open. If you're familiar with forex trading you will generally be offered a standard account or a mini account or a micro account. There are different variations to this but ultimately it depends on the lot size you can trade.

People get into forex because they like the high leverage that is available at some brokers which makes trading exciting and accessible even to traders with small accounts. Leverage does give a trader the ability to increase the potential return on investment but it also increases the risks. High leverage can easily destroy a trader's account.

Standard vs Mini vs Micro Forex Accounts
- With a standard account 1 lot = $10 a point. The minimum size you can trade on a standard account is 1 lot which is equivalent to $10. A 200 pips movement against you will cause you to lose $2000.
- With a mini account that means a $10,000 position which is equivalent to $1 per pip movement.
- With a micro account its 10c i.e. $0.1If the market goes up 10 pips you've made a $1. Sometimes you will get higher spreads with a micro than a standard account.

The idea of these different account is that leverage is adjusted to suit and different account sizes and account balances to accommodate each.

The accepted leverage is 1 lot per $50k = 1 mini lot per $5k

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