What is the best leverage for $200 in xauusd?
The best leverage for $200 account is 100:1 leverage. This is the leverage ratio in xauusd that is also used by professional traders.
With 100:1 leverage when you open an account with $200 you will have capital of $20000 to open trade transactions with - with 100:1 leverage it means your broker gives you $100 dollars for each one dollar which you have in your account. Therefore, if you have $200 dollars - $200*100:1 Leverage is equivalent to $20000 that you can trade with.
In XAUUSD with $200 dollars you can control $20000 dollars capital to trade with after leverage ratio of 100:1
What is the best leverage for $200 when xauusd trading? - 100:1 Leverage
What is the best leverage for $200 when xauusd trading? - when trading with $200 you should come up with your equity management rules that you'll use to manage your account capital. These set of money management guide-lines should be written in your plan. If you are a beginner trader wanting to open a $200 dollar account and you don't know what equity management guide-lines are, you can use the learn tutorials below to learn about what is equity management?
How Do I come up with money management rules for trading a $200 dollars account.
Trading with Leverage
The more leverage you use the greater the profit/loss
The less trading leverage that you use the lesser the profit or loss
It is hence better to use less leverage to minimize risks involved. The higher the leverage used the greater the risks. This is one of leverage guidelines not to trade with more than 5:1 leverage.
In leverage guidelines: It is always advisable to stay below 10:1 which is still high, most professional funds managers use 2:1 ratio in their account.
To Learn and Know More about Leverage and Margin - Read the Topics Below:
XAUUSD Leverage and Margin Discussed
