What is the best leverage for $400 in xauusd?
The best leverage for $400 account is 100:1 xauusd leverage. This is the leverage ratio in gold that's also used by professional traders.
With 100:1 xauusd leverage when you open an account with $400 you will have capital of $40000 to open trade transactions with - with 100:1 xauusd leverage it means your broker gives you $100 for each one dollar which you have in your account. Therefore, if you have $400 dollars - $400*100:1 Leverage is equal to $40000 that you can trade with.
In XAUUSD with $400 dollars you 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 in your plan. If you are a beginner trader wanting to open a $400 dollar account and you don't know what equity management principles are, you can use the learn tutorials below to learn about what's 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 that you use the lesser the profit or loss
It's hence better to use less leverage to minimize risks involved. The higher the leverage used the greater the risks. This is one of leverage rules not to trade with more than 5:1 leverage.
In leverage rules: It's 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:
Leverage and Margin Discussed
