What is the Best Leverage Level for a Trading Beginner?

The best leverage level for a beginner account is 100:1 trading leverage. This is the leverage ratio in indices trading that is also used by experienced stocks index traders.

With 100:1 trading leverage when you open a account with $100 you will have capital of $10,000 to open stock trade transactions with - with 100:1 leverage it means your online broker gives you $100 dollars for every one dollar that you have on your trading account. Therefore, if you have $100 dollars - $100*100:1 Indices Trade Leverage is equal to $10,000 that you as a trader can transact with.

In Trading with $100 you as a trader can control $10,000 capital to trade with after leverage ratio of 100:1

What is the best trading leverage ratio level for a beginner? - 100:1 Indices Leverage

What is the best leverage for a beginner? - when indices trading you should come up with your equity management rules that you will use to manage your equity.

This set of funds management rules should be written in your plan.

If you're a beginner trader and you do not know what funds management principles are, you as a trader can use learn courses below to learn about what is equity management.

• What is Trading Equity Management Rules

• Writing Money Management Rules

How to create money management rules for trading a $100 dollars account.

About Stock Index Leverage

The more leverage you use in indices the greater the profit or loss

The less leverage you use in indices the lesser the profit or loss

It is thence better for you as a trader to use less leverage so that to minimize the risks involved. The higher the leverage ratio used the greater the risks. This is one of leverage rules not to trade with more than 5:1 trading leverage.

In trading leverage rules: It is always advisable to stay below 10:1 trading leverage which is still high, most professional money managers use 2:1 leverage in their account.

To Learn and Know More about Leverage & Margin - How to Study the Tutorials Below:

• What is Leverage

• Indices Leverage and Indices Trade Margin Example

• Indices Leverage Margin Lesson

• What is Trading Equity Management

• Indices Funds Management Rules

Stock Leverage and Margin Example Explained

Get More Topics & Courses:

• Can You Trade US100 in MT5 Platform?
• Stock Index Key Concepts
• How Can I Add FTSE MIB 40 in MetaTrader 4 iPad App?
• How Do I Analyze a New Indices Order on MetaTrader 5 Stock Indices iPad App?
• How Do You Analyze Indices Signals?
• How Do I Trade SP500 Training Course for Trading SP 500 Index?
• How Can I Trade EURO STOXX in MT4 Software Platform?