The Safest Leverage for $500 account and reason, Why?

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  • 54% (15)
  • 11% (3)
  • 7% (2)
  • 0% (0)
  • 7% (2)
  • 21% (6)
Total voters: 28
 
The safest leverage for any account is the smallest possible and that's has nothing to do with the capital.
 

500 $ doesn't makes sense without leverage you need 2000 USD balance to work with .01 lot  or micro lot

so 2000$ is basic starting balance and if leverage is important then 1:25  better. 

 
Victor Ian Torres:
  • 1:100
  • 1:200
  • 1:500
  • 1:888
  • 1:1000
  • 1:2000
No matter what the leverage, "safety" is achieved by proper position sizing taking into account not only the Stop Size but also the Margin.

If you do it properly, it does not matter what you use! It is only dangerous for newbies and those that don't know how to properly calculate their trade risks.
 
Leverage should be irrelevant to your risk. It is your broker's stop loss. Not yours. Never risk more than a small percentage of your balance.
  1. In code
    • You place the stop where it needs to be - where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support.
    • Account Balance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the SPREAD, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)
    • Do NOT use TickValue by itself - DeltaPerLot
    • You must normalize lots properly and check against min and max.
    • You must also check FreeMargin to avoid stop out
  2. Use a GUI: Indicators: 'Money Manager Graphic Tool' indicator by 'takycard' Forum - Page 5
 

I think $500 deposit is risky itself with any leverage.  At least $1000 beginning balance is ok to work with 0.01 lot.

 
Instead it should be reasonable leverage on $500 account. For me 200 -  400 is reasonable
 
Leverage should be seen as an easy way of growing an account with small capital, but first you'll need perfect trades - high accuracy.
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