worth noting that average leverage with this company is about 1:600-1:700 so comparing to ‘standard’ firms who use mainly 1:100 or even less the comparable volume is about 15-22b/month

Are you saying that clients positions are leveraged 600x on average, or that this firm offers 600x leverage? If the former, i imagine the avg account lifetime to be rather limited..

Are you saying that clients positions are leveraged 600x on average, or that this firm offers 600x leverage? If the former, i imagine the avg account lifetime to be rather limited..

U r dead wrong MG. first of all, there is no way to verify their actual volume. Second, either you trade on low leverage or high, firms margin is almost same. Here is an example, 100k trade on 100:1 leverage is $10 a pip and 100k trade with 600:1 is also $10.

U r dead wrong MG. first of all, there is no way to verify their actual volume. Second, either you trade on low leverage or high, firms margin is almost same. Here is an example, 100k trade on 100:1 leverage is $10 a pip and 100k trade with 600:1 is also $10.

client positions, firm offers up to x2000

i loved being dead wrong 🙂
for some reason you are confusing pips with trading volume. with $100 the position you can take with 1:100 leverage is about 10,000 while with 1:1000 leverage it’s a full lot. their clients make use of extremely high leverage buying huge positions and probably being wiped out before understanding what happened

I can’t tell what’s more concerning, the clients who put on a 2000:1 position intentionally, or the broker who allows them.

At 2000:1 leverage, and a 1 pip spread (let’s assume a USD based account trading EUR/USD,) a fully leveraged trade instantly gobbles up ~20% of the account value and is entirely wiped out if the pair moves just 3-4 pips further against the trader.

I can’t tell what’s more concerning, the clients who put on a 2000:1 position intentionally, or the broker who allows them.

At 2000:1 leverage, and a 1 pip spread (let’s assume a USD based account trading EUR/USD,) a fully leveraged trade instantly gobbles up ~20% of the account value and is entirely wiped out if the pair moves just 3-4 pips further against the trader.

It is very controversial I agree. EXNESS have a majority of traders at 1:200 and the maximum for a classic account without minilots is 1:400, however they market this mini account with high leverage to clients with small deposit amounts and their view is that it allows traders to open enough positions to tolerate drawdown. It is by all accounts targeted toward the Asian market. I guess if client demand is there………

I know one thing, Victor looks like a man not to be argued with!

I know one thing, Victor looks like a man not to be argued with!

lol

In regards to the comments on leverage:

1) They only allow this leverage during the trading week. They reduce the leverage to 1:200 for all weekend positions.

2) it is clear that with 2000:1 leverage during the week only, that they are encouraging the use of aggression; best served with a properly spaced grid/martingale to ensure you are in and out before the weekend. Probably a lot sooner.

Either that, or all in at 1 price strategies.

ps: no email alerts for new comments. Will this be fixed?

In regards to the comments on leverage:

1) They only allow this leverage during the trading week. They reduce the leverage to 1:200 for all weekend positions.

2) it is clear that with 2000:1 leverage during the week only, that they are encouraging the use of aggression; best served with a properly spaced grid/martingale to ensure you are in and out before the weekend. Probably a lot sooner.

Either that, or all in at 1 price strategies.

ps: no email alerts for new comments. Will this be fixed?

sorry about that it was disabled for the iphone app testing, now it’s back to working