What is the best leverage for $400 in xauusd?
The best leverage for $400 account is 100:1 gold leverage. This is the leverage ratio in gold that's also used by experienced traders.
With 100:1 xauusd leverage when you open an account with $400 you'll have capital of $40000 to open trade positions with - with 100:1 xauusd leverage it means that your broker gives you $100 dollars for each one dollar which you have on your account. Therefore, if you have $400 dollars - $400*100:1 Leverage is equal to $40000 that you as a Gold trader can transact with.
In XAUUSD with $400 dollars you as a gold trader can control $40000 dollars capital to trade with after leverage ratio of 100:1
What's the best leverage for $400 when gold trading? - 100:1 Leverage
What's the best leverage for $400 when xauusd trading? - when trading with $400 you should come up with your equity management rules that you'll use to manage your account capital. These set of equity management rules should be written on your trading plan. If you're a novice trader wanting to open a $400 dollar account and you don't know what equity management principles are, you as a Gold trader can use the learn tutorials below to learn about what is money management?
How Do I come up with money management rules for trading a $400 dollars account.
Trading with XAUUSD Leverage
The more leverage you use the greater the profit/loss
The less leverage which you use the lesser the profit/loss
It is hence better to use less leverage to cap risks involved. The greater the leverage ratio used the greater the risks. This is one of leverage rules not to use more than 5:1 leverage ratio.
In money management leverage guide-lines: It's recommended to stay below 10:1 which is also still high, many professional funds managers use 2:1 leverage ratio in their account.
To Learn and Know More about Leverage and Margin - Learn the Tutorials Below:
Leverage and Margin Discussed
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