1:100 leverage vs 1:500

Friend of mine is at crossroads while opening his trading account. He cannot decide which leverage to settle for between 1:100 and 1:500. Please advise him

T
@thabokgosi - 2 days ago

Someone with 1:500 leverage can simultaneously open 5 times more trades than a person with 1:100 leverage assuming they are trading the same instrument, with the same lot size. But on the flip side, the person with 1:500 leverage is 5 times more likely to be kicked out of the market when losses start mounting

C
@chris_4eva - 2 days ago

Choice of leverage depends on expert level. Beginners should go for 1:100 because it will prevent them from revenge trading (and opening several trades out of greed)

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