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 also is used by experienced 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. Hence, if you have $200 dollars - $200*100:1 Leverage is equivalent to $20000 that you can transact 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 which you use the lesser the profit/loss
It is hence better to use less leverage to minimize risks involved. The greater the leverage option used the greater the risks. This is one of leverage guide-lines not to trade with more than 5:1 leverage option.
In leverage guide-lines: It is recommended to stay below 10:1 which is also 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
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