Stocks Leverage for Beginners

How Stock Leverage Increases Stocks Profits and Loses?

If you have a 1,000 dollar stock trading account with stocks leverage 100:1 you can buy upto a maximum trading contracts lots that are equal to 100,000 dollars Stocks contract lots

If you have a 1,000 dollar stock trading account with stocks leverage 100:1 you can buy Stocks Trading contracts lots which are equivalent to 100,000 dollars

If you have a 1,000 dollar stock trading account with stocks leverage 50:1 you can buy Stocks Trading contracts lots which are equivalent to 50,000 dollars

If you have a 1,000 dollar stock trading account with stocks leverage 20:1 you can buy Stocks Trading contracts lots that are equivalent to 20,000 dollars

From the above Stocks Leverage for Beginner Traders examples you can see that the more stock leverage you use the greater the profits or losses and the less you use the lesser the profits or losses.

It is therefore better to use less stocks leverage so as to minimize risks involved. The higher the stocks leverage used the higher the risk. This is one of the stock leverage rules not to trade with more than 5:1 stocks trading leverage.

In stock leverage rules: It is always advisable to stay below 10:1 which is still high, most professional money managers use 2:1 meaning they trade only 2 lots for every $100,000 in their stock trading account.

How to Change Stocks Leverage in MT4 Platform

How to Change Stocks Leverage on MT4 Platform - To change stocks leverage that you are using on your MT4 stock platform you will have to go to your Secure My Account area on your stocks broker site, login to this My Account Area & after log in navigate to the change leverage option for your MetaTrader 4 stocks account - then choose the new stocks leverage that you want for your stocks account & then confirm the new stocks leverage option and your stocks leverage will be changed to the new stocks trading leverage option that you've just selected.