Re: Evaluate your Broker before Account Opening- Check List & Evaluation Results Upda
Guys,
I don't think, specifically for MCX 2 Times & for F&O 2.5 times is not sufficient at all for a high volume day trader..as day hedging strategy require good exposure..atleast 5times...
Not sure about your level of experience with leverage.
I am not sure which hedging strategy you mention. A day trade using hedging? Would love to know more.
Not necessarily aimed at you, just relevance to the topic of LEVERAGE:
As soft_trader points out, its a double edged sword.
Most brokers are open to giving you higher exposure levels after your account being with them for a while. Not sure about the one mentioned though.
I have traded with leverage as high as 1:400. This was before, with abandon, and after, with extreme caution. The easiest way to take a fast exit from markets is to use leverage.
Let me repeat:
If your experience and understanding of leverage is limited to: more margin for trades/higher volume trades. DO NOT USE LEVERAGE.
If you have redundant systems in place. (RMS, multiple net connections,
Multiple UPS systems, SL calculators and updating, Loss calculation systems(RT), the list goes on.)
Have a robotic detachment to emotions i.e. trading psychology, and capability of execution.
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I have my list somewhere.
If you can just check the above items off the list, better yet get a trade journal note everything with time and reasons. Re-valuate after a set time, only then should one even think of using ANY leverage.
Just look up the LEHMAN BRO's case for a cautionary tale.