LEVERAGE SHOULD NEVER BE MORE THAN 1:500 AT ANY CONDITION EITHER YOU ARE EXPERIENCED OR BEGINNER.
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Why should a new Trader use 1:25 leverage if capital is 1000 USD and why do a new Trader with 10000 USD
can use 1:100?
SCENARIO-1
A new Trader with 1000 USD
if he trades with 1:100 and GBP/USD if he put STOP LOSS 50 pips
1:100 Leverage = 1pip = 15 USD
50 pips x 15 = 750 USD LOSS
75% Loss
1000 USD – 750 USD LOSS = 250 USD LEFT
SCENARIO-2
A new trade with 10000 USD capital can digest this 250 USD loss
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