MT4 leverage

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I am a newbie on MT4 trading. What type of leverage should I set to be not so risky? eg 1:500 or 1:200
 
limhakweng:
I am a newbie on MT4 trading. What type of leverage should I set to be not so risky? eg 1:500 or 1:200

Manualy trading - 1:3 (1:10 at most).

It's true that you will hear people say that what is important is not risking more then x percent (usually 1) and not the leverage, but even if you comply to this rule, and leverage 1:500 it means you risk almost certain of a loss in that trade. 
To give yourself the best opportunity to succeed, comply to the 1 pct - and don't over levarage.

 
  1. If you are worried about margin and leverage, you are not controlling your risk. Never risk more than a small percentage of your account, certainly less than 2% per trade, 6% total to the account. Risk depends on your initial stop loss, lot size, and the value of the pair. It does not depend on margin and leverage.
    1. You place the stop where it needs to be — where the reason for the trade is no longer valid.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.
    2. AccountBalance * 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.)
    3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
                MODE_TICKVALUE is not reliable on non-fx instruments with many brokers - MQL4 programming forum 2017.10.10
                Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum 2018.02.11
                Lot value calculation off by a factor of 100 - MQL5 programming forum 2019.07.19
    4. You must normalize lots properly and check against min and max.
    5. You must also check FreeMargin to avoid stop out

    Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5 or 0.1 Lots maximum.

  2. Search for a GUI/Trade Assistant EA like mine (for MT4): 'Money Manager Graphic Tool' indicator by 'takycard' - Risk Management - Articles, Library comments - MQL5 programming forum - Page 6 #55
 
limhakweng:
I am a newbie on MT4 trading. What type of leverage should I set to be not so risky? eg 1:500 or 1:200

for the simply reply, that is 1:500.


but for further, most people lost their money in the end.whatever what it is leverage given.

if you want to trade $1000 of them,,when is is 1:1(in bank,for example),you will surely need $1000 to set up the order.

but when the 1:100 leverage is given, you only need $10 to start the trade.

BUT! in return,you will be forced to close the order,as soon as you reach the deadline.

the deadline is depends on your rest money.

so here the problem. for most people, if given $1000 and 1:100,they will open more than 0.01lot,may be 0.1lots and if given $1000 and 1:500,it may be 0.5lots. that will need to the failure.

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