What is the Best Leverage Level for a Trading Beginner?
The best leverage level for a beginner trading account is 100:1 trading leverage. This is the leverage ratio option in stock indices trading that's also used by experienced stock traders.
With 100:1 trading leverage when you open an account with $100 you'll have capital of $10,000 to open stock trades with - with 100:1 leverage it means your broker gives you $100 dollars for every one dollar that you have in your trading account. Therefore, if you have $100 dollars - $100*100:1 Indices Trading Leverage is equal to $10,000 that you can trade with.
In Trading with $100 dollars you can control $10,000 capital to trade with after leverage of 100:1
What is the best trading leverage leverage level for a beginner? - 100:1 Indices Trading Leverage
What is the best leverage for a beginner? - when indices trading you should come up with your money management rules that you will use to manage your trading account capital.
This set of money management rules should be written in your plan.
If you are a beginner trader and you don't know what money management rules are, you can use learn courses below to learn about what is money management.
How to come up with money management rules for trading a $100 dollars account.
About Indices Trading 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 therefore better to use less leverage so that to minimize the risks involved. The higher the leverage used the higher the risk. This is one of the 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 trading leverage in their trading account.
To Learn and Know More about Leverage & Margin - How to Read the Topics Below:
Stock Leverage & Margin Explained
What's a Trade Plan? - Written Plan Example Template
Alternatives: Automated EA Trading or Copy and Paste Signals
