CONTROLLING YOUR LEVERAGE
CONTROLLING YOUR LEVERAGE
| LEVERAGE SCALE | MARGIN REQUIREMENT | LEVERAGE | RISK SCALE |
| 0.5% | – | X200 | HIGH RISK |
| 1% | – | X100 | |
| 3% | – | X33.3 | |
| 10% | – | X10 | |
| 20% | – | X5 | |
| 50% | – | X2 | |
| 100% | – | NO LEVERAGE | LOW RISK |
Remember! Leverage can be tailored according to your risk appetite. If you are risk averse, trade on higher margin requirements to reduce your leverage Be Careful! Learn to control your leverage, treat it as a credit card, be careful not to get carried away with money you don’t have just because it’s available!
TECHNICAL ANALYSIS
Technical analysis serves as an important aid in risk management we can use it to:
Identify & Time Entry/Exit points
Identify Support & Resistance
Strategic Stop Loss Orders
Identify Trends & Chart Patterns
Create Risk Parameters – Technical Indicators
All the above will aid the reduction of risk and help improve your chances of making profits. For more information on Technical Analysis please see the “Analysis” Module