Consider leverage in FX automated trading
This time, with FX automated trading
we will consider leverage.
(greatly revised from a previous article)
https:// Salaryman-investment-auto-trading.com/fx-beginner/fx-know/post-857/
Leverage
is 25x domestically
and over 100x overseas
for trading.
When trading with leverage
4% of the trading amountas marginto be deposited in the account.
This amount of margin becomes the important
benchmark when operating.
If the funds in the account drop to the margin amount,
a forced liquidation occurs and
all positions are closed,
and with that account's funds
it becomes unrecoverable
in many cases.
In FX automated trading trades,
an EA can hold
multiple positions
at once,the margin
amount increases, so caution is required.
As the margin increases,
not only can the EA fail to trade,
but losses can quickly lead to
a drawdown that reaches liquidation.
There are cases where it can be wiped out rapidly.
Regarding leverage,
it’s not just safe within the leverage range,
but the perspective of how much you are willing to tolerate
losses for risk management is also important.
Now, in FX automated trading,
we have compiled an article
summarizing leverage.
https:// Salaryman-investment-auto-trading.com/fx-beginner/fx-know/post-857/
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