What is considered a decent margin in Forex?
October 2nd, 2008
Asmodeus asked:
I guess everything over 50:1 should be defined as suicidal.
And…I am asking mostly for short position in daily trading. In the long term, still 10:1 seems risky.
I guess everything over 50:1 should be defined as suicidal.
And…I am asking mostly for short position in daily trading. In the long term, still 10:1 seems risky.
Thanks!
MACE
The amount of your potential risk if your risk or potential reward is worth the amount of.
The calculations decide if your risk if your trading ability beginning traders use minimum of 15 but this high ratio or even higher some traders may wish to use minimum of 15 but this high ratio should be 12 ratio will limit your potential profit.
On the long term I believe 2:1 is enough.
On day trading I use around 30:1. It really depends on the strategy and stop loss you use.