William M asked:


I will be 18 soon, will have saved up £4k and I’m looking to trade forex by using CFDs which give you 1:200 leverage with them. Would it be possible to parley my £4k into £1 million in 2 years trading forex using CFDs and has this, or anything similar with forex ever been done before?

nauticalpsycho asked:


Does anyone have any suggestions on a leverage limit?

Many FOREX brokers allow up to 200:1 leverage. My trading strategy is to take just very small gains (3 or 4 pips at a time) and set the stop losses way out there just to avoid a total wipeout. I never trade on Fridays either and of course close out before the market closes.

Because of the giant stop losses, I am only comfortable with around 20:1 leverage or maybe 30:1.

In other words, with a $500 margin account balance, I would only consider buying 0.1 lots of EURUSD (10,000) at a time; 0.2 lots with $700; 0.3 lots with $1100 and so on…

Does anyone out there use the same strategy as me and feel comfortable with higher leverage like 40:1, 50:1 or even higher?

John asked:


Is there a difference between the two?

Profit/loss will be cut by the same amount either way, correct?