What is a safe margin percent to have in Forex? I’ve been doing 25%

in #forex6 years ago

This is very base on strategy and capital.

  1. If your capital is small (<5k), most probably you will need a high leverage broker, you will need a scalp system and you will come and go as fast as the wind. You may gain up to 20k from just 1k to begin with, but the chance is smaller than other systems. You also must deal with stress and take in like 2L of coffee daily... In short, your margin would be 100% of your capital, like it or not. But with just 1k, you may withdraw like 5k in just 2 weeks of trading. Here is an example of a scalp from 01 Mar to 17 Mar: Profit 5k2 from 1k invested.
  2. If you have an average account, about 10k, now you can use the leverage that you want. This is for you to choose your margin now. But again, it is up to your trading style; if you go long term (keep trades for days) you should not expose more than 2% a trade; if you are midterm, then your total trades should keep your drawdown as low as possible
  3. If you have a large account or you manage a large account for clients, you need to ask the client what is their expose acceptance and follow.

Regards,
Will Vu - Forex Investors since 2006

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