Leverage of 1:3000

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TobiasBecker
78
TobiasBecker  

Hello guys,

yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

Would this much leverage not be very interesting for martingale trading for instance? One could take on much more martingale trades because of the low margin required, which would reduce the risk of getting wiped out.

What do you think about this, guys? Have you ever worked with this much leverage before?

Greetings

Tobias

soubra2003
31839
soubra2003  
TobiasBecker:

Hello guys,

yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

Would this much leverage not be very interesting for martingale trading for instance? One could take on much more martingale trades because of the low margin required, which would reduce the risk of getting wiped out.

What do you think about this, guys? Have you ever worked with this much leverage before?

Greetings

Tobias


it won't reduce the risk!

if you have a good strategy then why you haven't try 1:500 or lower?

TobiasBecker
78
TobiasBecker  
Mohammad Soubra:

it won't reduce the risk!

if you have a good strategy then why you haven't try 1:500 or lower?


Of course you can still get wiped out very easily.

Imagine the following:
Lets say you can take 10 losing martingale trades before you get wiped out on a 1:500 account.
With the 1:3000 account you could have position sizes six times as big which would mean that you could handle 12 losing martingale trades before the account blows up if you double on a loss.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

soubra2003
31839
soubra2003  
TobiasBecker:

Of course you can still get wiped out very easily.

Imagine the following:
Lets say you can take 10 losing martingale trades before you get wiped out on a 1:500 account.
With the 1:3000 account you could have position sizes six times as big which would mean that you could handle 12 losing martingale trades before the account blows up if you double on a loss.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

I have enough experience in martingale, what ever is your broker's leaverage you will lose. Even if 1:3000 or more!!!
Eleni Anna Branou
Moderator
6563
Eleni Anna Branou  
TobiasBecker:

Hello guys,

yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

Would this much leverage not be very interesting for martingale trading for instance? One could take on much more martingale trades because of the low margin required, which would reduce the risk of getting wiped out.

What do you think about this, guys? Have you ever worked with this much leverage before?

Greetings

Tobias


Great, the easiest way to destroy your account!

Enrique Dangeroux
408
Enrique Dangeroux  

1:3000 and Martingale. Just add the free deposit bonus to the mix -which i am sure the broker offers- and you will end up with a nice juicy cocktail. 

Just the hangover... The hangover :)

soubra2003
31839
soubra2003  
The best trades are the classical and the lowest frequent trading
Fernando Carreiro
4315
Fernando Carreiro  
TobiasBecker: yes, you have read that right. There is a broker with maximum leverage of 1:3000, I can not tell you the name because advertising is not allowed, but you will find it on google.

Would this much leverage not be very interesting for martingale trading for instance? One could take on much more martingale trades because of the low margin required, which would reduce the risk of getting wiped out.

What do you think about this, guys? Have you ever worked with this much leverage before?

Of course you can still get wiped out very easily.

Imagine the following:
Lets say you can take 10 losing martingale trades before you get wiped out on a 1:500 account.
With the 1:3000 account you could have position sizes six times as big which would mean that you could handle 12 losing martingale trades before the account blows up if you double on a loss.

There are two extra trades only because of the higher leverage and the lower margin associated with it, those two trades could make a difference in my opinion.

I think you better do your math again! The Risk or loss based on the stop size is irrespective of leverage or % Margin.

If you lose 10 pips for 1 lot ($100 on "xxxUSD") then that is 10 piplots ($100) whether that be on 1:100, 1:500 or 1:3000 - it makes no difference.

You will still blow your account in no time!

EDIT: People don't seem to realise that Leverage or % Margin just alters the maximum amount of volume you can open and order with, but once closed, the difference, whether that be Profit or a Loss is the same no matter what the Leverage! That is why experienced traders always tell newbies to evaluate their risk calculation based on the Stop Size.

Forum on trading, automated trading systems and testing trading strategies

Martingale, Hedging and Grid : MHG

Fernando Carreiro, 2017.09.05 01:59

On a Cent account, your gains are also in cents and therefore 100 times less that normal accounts but still limited by the same maximum number of lots that brokers allow (many have a limit of 100 Lots and many others a limit of 50 Lots).

The following table for a normal account shows how quickly it can "blow" your balance, trading for example on EUR/USD or GBP/USD or many other xxx/USD currency pairs:

Consecutive Martingale Orders
Lots
10 pips loss
100 pips loss
1
0.01
$1.00
$10.00
2
0.02
$2.00
$20.00
3
0.04
$4.00
$40.00
4
0.08
$8.00
$80.00
5
0.16
$16.00
$160.00
6
0.32
$32.00
$320.00
7
0.64
$64.00
$640.00
8
1.28
$128.00
$1,280.00
9
2.56
$256.00
$2,560.00
10
5.12
$512.00
$5,120.00
11
10.24
$1,024.00
$10,240.00
12
20.48
$2,048.00
$20,480.00
13
40.96
$4,096.00
$40,960.00
14
81.92
$8,192.00
$81,920.00
Max Lots (on many brokers)
100.00
$10,000.00
$100,000.00
PS! Actually my table is conservative, because losses are cumulative, so actual values are double the losses shown on this table!
So, draw your own conclusions!!!
TobiasBecker
78
TobiasBecker  

You are absolutely right if you say that 1:3000 is madness :D

But I think my math is still pretty much on point though.
Sure, the loss in absolute terms will be the same regardless of leverage, but the lower margin will allow for more consecutive martingale trades, thereby increasing the possibility for the position to turn into the favourable direction.

Marco vd Heijden
Moderator
8151
Marco vd Heijden  

You might have something there.

Adiasa
130
Adiasa  

It depends on your strategy and your risk management. the advantage of forex is in leverage, but many people wipe out their account because of it.

if you trade with multiple pairs, then leverage is good ( regarding your stoploss and risk management). Don't forget to look the spreads comparing another broker. Some brokers give you more leverage but with hugh spreads (very hugh on brokers 1:1000 or more). I use 1:500 leverage with really tight spreads, which is match into my strategy. So again, it depends on your strategy.

12
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