What is 1:1 Indices Trading Leverage for $100 Mean?
Indices Trading Leverage in indices trading is the ratio of a indices trader's money to that of the borrowed capital that has been borrowed from the stock indices trading broker.
1:1 indices trading leverage basically means that as a indices trader you are not using any indices trading leverage from your indices broker
Therefore if a indices trader has $100 in their indices trading account they will not have borrowed any indices trading leverage - using 1:1 stock indices trading leverage and therefore after stock indices leverage of 1:1 they will have $100*1:1 stock indices trading leverage and this will be equal to $100 dollars of their own indices trading capital.
Indices Trading Money Management Guidelines for Trading with 1:1 Indices Trading Leverage
When indices trading with 1:1 stock indices leverage you should come up with your indices trading money management rules that you will use to manage your stock indices trading account capital. This set of indices trading money management rules should be written in your indices trading plan. If you are a beginner indices trader wanting to open a $100 dollar stock indices trading account and you do not know what indices trading money management rules are, you can use the learn indices trading tutorials below to learn about what is indices trading money management?
How to come up with indices trading money management rules for trading a 1:1 Indices Trading Leverage Trading Account.
About Indices Trading Leverage
The more stock indices leverage you use the greater the profit or loss
The less stock indices leverage you use the lesser the profit or loss
It is therefore better to use less indices trading leverage so as to minimize the risks involved. The higher the stock indices leverage used the higher the risk. This is one of the indices trading leverage rules not to trade with more than 5:1 stock indices trading leverage.
In indices trading leverage rules: It is always advisable to stay below 10:1 which is still high, most professional money managers use 2:1 in their indices trading account.
To Learn and Know More about Indices Trading Leverage and Margin - How to Read the Topics Below:
Indices Trading Leverage and Margin Explained
Regulated Indices Broker Information: Read About Regulated Indices Broker Review
Takes 5 Minutes to Open an Account, Open an Account Early: Open Indices Account
