Leverage in crypto v Leverage in Forex

[Victorial]

As a forex trader or a crypto trader, leverage should not be a new term. This can also be called lot size. Leverage is the use of borrowed funds to increase one's trading position and that has a direct effect on your profits and losses. Hence, a good teaser knows a lot of sizes to use that will make him more comfortable with avoiding losses. People use different lot sizes according to their capital as the capital mostly determines which leverage to use.

In forex trading, the minimum lot size is 0.01 and that is used to multiply the movement of pips away from your entry position. I am more comfortable with 0.01 as it gives me the confidence that my account is still safe but I add a stop loss to avoid huge losses.

In crypto, I do not know the minimum lot size and I am curious to know. While trading on Stormgain, the minimum leverage was 5 and I can't help but wonder that it is high. How can I use 5 lot size in forex trading without burning my account? In fact, the broker will not allow the trade to open.

So I want to know how both are related. Does 5 In crypto mean 0.05 in forex or less?

 

[Kingstone]

I don't even understand either. Leverage in forex must be totally different from the leverage used in forex. I do not think it's I'll be easy to combine both types of trading unless you want to make mistakes. Trading on Forex and crypto is also influenced by market decisions and they can fluctuate also. Crypto has never been stable anyway.

With 5 lot size in forex, you must have like 1000$ or more in your account to carry such a high lot size. But in crypto, you can carry it out with just $10. I have done that many times on Stormgain and the order wen well and even gained some profits.

 

[Sotherefore]

Both of them are almost the same , there was a time I was trading Forex as a trials on demo account, I observe that using of leverage in forex is just the same as using of leverage in cryptocurrency and both of them are potentially risky if you don't know how to predict the market perfectly .


well as a newbie I won't really advise you to use leverage until you are really sure about how the market goes because using a higher leverage now might even make you to lose so much of your money that you may not likely be able to recover.

When i was into cryptocurrency trading then the only thing I regretted the most was using a high leverage and I wouldn't even advised any other person to engage in this because using of leverage may be risky except you fully understand what you are doing...

I believe you do not really understand much about forex and how to predict the market,
you have to learn perfectly to understand everything , risk management is very important because even when there is quality signal without risk management you will still be at Lost.. don't underrate any strategy in volatile market.