If ihave 1k how much to use margin for safe trade
To hold position for say two days
And which safe laverage to use
As someone who has lost money in futures both in the past and recently, I would like to add my own experiences and I hope it will be useful for both you and everyone else.
First of all, it is very important to use stop loss for every transaction and this stop loss level should be determined by technical analysis. In addition, it is necessary to make very careful calculations when using stop loss in high leverage transactions because due to high leverage a stop loss order placed at a very close price may actually amount to 50-60% of the position amount. For this reason, it would be beneficial to analyze the stop loss point well and act carefully in order not to become a victim of a needle in a possible fluctuation.
I strongly recommend that friends with a capital amount of three digits use a maximum of 10 times leverage, friends with a capital amount of four digits use a maximum of 5 times leverage, and friends with a capital amount of five digits use a maximum of 3 times leverage. A high leverage amount not only causes your capital to melt away but also significantly increases the cost of your stop loss order at a very close price.
It would also be beneficial to take profits gradually because depending on the leverage ratio very rapid and serious changes occur in the amount of gain or loss in margin transactions. Therefore, closing the position in three or four moves and taking profits at certain price levels will definitely be a very good option.
On the other hand, it is necessary to avoid opening a transaction just for the sake of it. It is important to remember that in leveraged transactions we increase the risk rate with the leverage amount. In other words, opening a transaction for the purpose of having an open transaction under such risky conditions will only cause you to be more affected by possible losses.
I would like to remind you again,
HIGH LEVERAGE SHOULD NOT BE USED!That's all I can say for now, I hope it was useful. Oh, and I would like to remind you that what I wrote is not information I read or heard from a few places but rather the experiences I gained by confirming it with my own transactions and I lost a five-digit amount of money in dollars to turn these into my own experience.