# Forex Margins - looking for less risk



## wazza1987 (26 May 2010)

Hi everyone,

I'm a civil engineering student who graduates this year so I've been researching forex trading (and shares) in the hope that I have a decent income in the next few years. 
It seems that the brokers I've looked at only offer 1% or 2% margins. I was hoping that when I finally decide to trade that I could trade at 10-20% so that the risk (and profit/losses) is lower. 
Is this possible through margins or is there another method that may suit this type of trading.

Thanks for any help 

wazza


----------



## Trembling Hand (26 May 2010)

Mate!!!!!!! It doesn't matter how much the broker takes for margin. You just position size your holdings to appropriate levels. Look up position sizing and if you're half smart you soon see margin has nothing to do with risk unless you're a cowboy.


----------



## wazza1987 (26 May 2010)

thanks for the response.

so say if I had $10,000 capital, I might only buy a few hundred dollars worth of foreign currency at 1% to keep my leverage low? 
Are trades of this value common?


cheers


----------



## wazza1987 (26 May 2010)

Ok,

I actually found some useful links which make my last statement look silly.

thanks for the help


----------



## cogs (26 May 2010)

Try this post

https://www.aussiestockforums.com/forums/showthread.php?t=19564


----------



## tayser (26 May 2010)

wazza1987 said:


> thanks for the response.
> 
> so say if I had $10,000 capital, I might only buy a few hundred dollars worth of foreign currency at 1% to keep my leverage low?
> Are trades of this value common?
> ...




$10,000 in a currenex account, trade on no margin, it'll give you $1 pips.  *Shrug*


----------



## oktar (29 June 2010)

There is an opinion that using leverage is bad thing, eg babpips are teaching newcomers that leverage is evil. However I'm saying that it is your friend. If leverage wouldn't exist (1:1 leverage) then most of retail traders wouldn't get good profits (even when making a 100 pips / d). So use leverage as big as you can, or just 1:100. It doesn't matter. Just fit your Money Management accordingly and thats it.


----------

