Leverage of 1:3000 - page 2

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TobiasBecker: 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.
Wow! Who can argue with that logic[?] No wonder so many lose their money so easily and so quickly! I guess they all want to belong to the 90/90/90 club[!]
 
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


Hi, if you want there is also one at 1:5000 ...

 
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.

Fernando is totally right. Your math are not the problem, the problem is you are not looking at the right thing.

"more consecutive trades" means you are increasing your risk, and it overcomes completely any advantages you could have with a lower margin for the same lot size.

What will be to lot size of the next trade you will open ? what will happen to his trade if it goes on the wrong side too ?

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