NOTICIAS FOREX

If there’s one thing that gets forex traders’ pulses racing more than caffeine and FOMO combined, it’s the glorious market breakout. You know the drill: the price has been sulking around in a boring sideways range for days, everyone’s twiddling their thumbs, and then - BOOM! It smashes through support or resistance and suddenly the charts look like they’ve had a rocket take off. But before you mortgage your house to jump on the next breakout candle (seriously, please don’t), let’s break down why breakouts happen, how to spot them, and how not to get fooled by those cruel imposters that we call false breakouts. Because nothing says “welcome to trading” quite like a chart that tricks you into buying the top or selling the bottom. What Exactly is a Forex Breakout? In forex, a breakout happens when the price moves beyond a significant level of support or resistance with increased momentum and volume. Think of it like this: price has been stuck inside a tiny, cramped room (a trading range), and eventually it gets fed up, kicks the door down, and charges into new territory. Traders love breakouts because they often signal the start of a strong trend or at least a short-term move that can make some serious pips. Of course, the market doesn’t always give us what we want, sometimes breakouts are real, and sometimes they’re fake, like those knock-off designer handbags you see on dodgy websites. Breakouts can happen upwards (bullish breakout) or downwards (bearish breakout). Spotting which direction, the price will go, and whether the move is genuine, is the holy grail of breakout trading. Why Do Market Breakouts Happen? Breakouts are not random acts of market rebellion. They happen because of a build-up of pressure, liquidity, and trader psychology. Understanding the “why” behind a breakout is half the battle, and the other half is not panicking when your trade doesn’t go according to plan. 1. Accumulation of Orders: Picture thousands of traders setting buy orders just above resistance or sell orders just below support. Eventually, price hits those levels, triggering all those waiting orders like a row of dominos. Voilà - a market breakout. 2. News and Events: Economic data, central bank announcements, or a politician blurting something reckless can shove the market through key levels. (Shout out to, Jerome Powell, for singlehandedly turning sideways charts into rollercoasters.) 3. Stop Hunts: Big players - often called “smart money”- sometimes push prices through obvious levels to trigger stop losses, creating artificial momentum. This is like the market giving you a little nudge… and then laughing as you tumble. Breakouts happen because markets are dynamic, emotional, and full of participants with different agendas. And yes, sometimes the chaos is exactly what makes trading fun (or terrifying). Famous Breakouts in Forex History If you think breakouts are just intraday gimmicks, think again. Some have shaped entire market cycles and left traders either celebrating or crying into their candlestick charts.   ●  EUR/USD Breakout of 2014. The euro looked strong… until the European Central Bank hinted at stimulus and the U.S. dollar flexed its muscles. EUR/USD smashed through 1.3500 and didn’t stop until it dropped over 3,000 pips in less than a year. Traders who caught that breakout are still bragging at parties.   ●  GBP/USD “Brexit Night” (2016). The pound decided to impersonate a skydiver without a parachute. The 1.5000 level broke during the Brexit referendum, and GBP/USD plummeted to around 1.3200 in hours. That’s not a breakout; it was a financial cliff dive.   ●  USD/JPY in 2022. Thanks to the Fed hiking rates faster than you could say “inflation crisis,” USD/JPY broke out above 120.00 and bulldozed its way toward 150.00. Traders who didn’t ride that wave still have nightmares about this. These examples show that breakouts aren’t just theoretical- they can create massive opportunities if you spot them correctly. And yes, they can also create spectacular losses if you don’t. How to Spot a Potential Breakout Spotting a breakout isn’t about clairvoyance (if you had that, you’d be sipping cocktails on your own private island by now). It’s about reading price action, volume, and context to give yourself an edge. 1. Look for Consolidation: Before a breakout, the market often ranges tightly. The smaller the range, the more explosive the breakout can be. Picture a coiled spring: the tighter it’s wound, the bigger the “boing.” 2. Watch Key Levels: Mark major support and resistance zones. The more times price bounces off a level, the stronger the eventual breakout could be. If everyone’s eyes are on the same level, expect the fireworks to go off. 3. Volume Confirmation: Breakouts with high trading volume tend to be real. Low-volume breakouts? That’s just the market pretending to be exciting. 4. Fundamental Catalysts: Check the economic calendar. Events like Non-Farm Payrolls, interest rate decisions, or geopolitical shocks are classic breakout triggers. (Warning: they also spike your blood pressure.) By combining technical levels with context and volume, you can start to differentiate between likely breakouts and wishful thinking. The Dreaded False Breakout Ah, false breakouts, the forex equivalent of being catfished on a dating app. Everything looks perfect at first, then reality smacks you in the face. A false breakout happens when price temporarily breaches a support or resistance level, luring traders in, only to reverse and trap them in losing positions. Cue collective screaming in the forex trading community. How to Spot a False Breakout Before it Destroys Your Account 1. Lack of Volume: If the breakout isn’t backed by strong volume, it’s probably as genuine as a three-dollar bill. 2. Fast Rejection: Price pokes above/below a level but quickly snaps back inside the range. That’s your cue that the breakout is faker than a reality TV romance. 3. Overly Obvious Levels: If everyone and their grandma is watching the same level; big players may engineer a false breakout to grab liquidity. 4. Wait for Confirmation: Don’t chase the first breakout candle like it’s the last train of the night. Wait for a retest of the broken level to see if it holds as new support or resistance. False breakouts exist to keep traders humble, irritated, and slightly paranoid, but if you recognise them early can save your account from unnecessary drama. Strategies for Forex Trading Breakouts Trading breakouts can be thrilling, but like riding a rollercoaster with your eyes closed, it can also be terrifying if you don’t have a plan. Here are some strategies to help you ride the wave without wiping out. 1. The Classic Breakout Strategy: Enter when price breaks a significant level with volume confirmation. Place stops just inside the previous range in case it’s a fake-out. This approach is straightforward but remember: the market doesn’t owe you pips. 2. The Retest Strategy: Wait for price to break out, then pull back to test the level it just broke. If the level holds as new support or resistance, enter the trade. This avoids chasing false moves and gives a better risk-to-reward ratio. 3. The News Breakout Strategy: Trade during high-impact events (NFP, interest rate decisions, central bank speeches). The volatility can be insane, but that’s where the opportunity lives. (Warning: your blood pressure may rise faster than your account balance.) 4. Avoid Over-Trading Breakouts: Not every wiggle on the chart is a breakout. Patience is your best friend. Only take trades where the technical and fundamental evidence lines up, otherwise, you’re just throwing darts blindfolded. By combining technical levels, confirmation signals, and smart risk management, you can navigate breakouts without constantly sweating bullets. Psychological Warfare: Breakouts and Your Brain Breakouts aren’t just a battle on the charts, they’re a battle in your head. Fear and greed love to tag-team traders at every twist and turn.   ●  FOMO (Fear of Missing Out) Seeing a breakout take off without you can make even the most disciplined trader impulsive. Suddenly, you’re chasing price like it’s a free pizza van on your street.   ●  Fear of False Breakouts On the flip side, paranoia about a fake move can make you hesitate, leaving you on the sidelines while the “real” breakout zooms past.   ●  Overconfidence After Success Catch a breakout perfectly once, and suddenly you think you’re the next trading messiah. Markets have a way of humbling you… repeatedly. The key is discipline and a solid plan. Decide your levels, define your risk, and stick to your strategy. Laugh at your mistakes, learn from them, and remember: the market doesn’t care about your feelings, but it does reward preparation. Conclusion: Breakouts are Awesome… Until They’re Not Breakouts are one of the most exciting and potentially profitable parts of forex trading. They represent shifts in supply and demand, opportunities for big moves, and yes, plenty of traps to keep traders humble. The secret to surviving (and thriving) in breakout trading is simple:   ●  Learn to spot consolidation and key levels.   ●  Watch volume for confirmation.   ●  Don’t blindly trust the first candle.   ●  Respect false breakouts, they exist purely to teach humility.   ●  Manage your risk like your account depends on it… because it does. When a breakout happens, don’t panic, don’t chase blindly, and for the love of pips, don’t mortgage your house to trade it. Somewhere out there, thousands of traders are facepalming alongside you, and sometimes, that’s the most comforting thing in the world. With the right strategy, patience, and a little bit of humour, you can ride the thrill of breakouts without becoming a cautionary tale. Because in the end, the market is entertaining, but it’s a lot more fun when you don’t cry over your charts.

  ●  Silver records fresh all-time high   ●  Precious metals rise as one   ●  Awful start to the week for Bitcoin Onwards and upwards for silver It was a record-breaking day for silver last Friday, with prices increasing a staggering 5.6% to reach $56.37 by the weekly close, surpassing the previous all-time high established back in October. The white metal climbed even higher this morning, coming within touching distance of $58 per ounce early in the Asian session. It is hard to believe without looking at the charts, but silver has almost doubled since the start of the year. Precious metals in general had a whale of a time on Friday, with gold, platinum, palladium, and even copper putting in strong performances. While speculation has certainly done its part to raise the tide for precious metals, silver prices have enjoyed the additional quirk of being subject to supply concerns. The previous record high coincided with a supply shock in the London vaults, while the current push is happening alongside a drought in Chinese warehouses. Beyond the obvious supply problems, silver is also facing the possibility of being affected by tariffs, after the US Geological Survey listed the metal as a critical mineral last month. As if that were not enough, a perfect storm emerged last Friday when a data centre supporting the Chicago Mercantile Exchange (CME) suffered a disastrous ten-hour outage due to overheating. The exchange handles everything from stock indices to currencies, bonds, oil futures, interest rates, and of course, precious metals. The disruption affected markets worldwide and left brokers without up-to-date quotes. Prices across many assets remained frozen for several hours, leading to temporarily illiquid market conditions, which were already on the thinner side due to reduced Thanksgiving trading hours. While the exact cause of the data centre failure remains unclear, the CME is now once again fully operational and trading has resumed as normal. No relief for crypto The euphoria in silver is in sharp contrast to the despair in cryptocurrencies. Only a few hours into the week and Bitcoin is already 5% in the red, with prices plummeting to $85,000 as of this morning. The rest of the crypto market is faring as one would expect. A poor October led to an atrocious November, which has now opened the door to a dreadful start to December. The move was caused by a large wave of liquidations, with long positions worth over half a billion dollars being wiped out over the past 24 hours. Rough times. The week ahead Jerome Powell is set to speak late tonight, in what will be the Federal Reserve Chairman’s final comments before the December 10th meeting. Interest rate traders are now looking at an 87% chance of a rate cut next week, at least according to FedWatch. Although Powell’s tenure will not end until May, President Trump has apparently already decided on his replacement, although the decision has not yet been made public. A number of data points will help steer the Fed this week; the first on Wednesday, in the form of the latest ADP employment change; the second on Friday, in the form of the latest PCE price index. Unfortunately, the PCE figures only track the changes recorded in September, so the usefulness of such information is debatable. The government shutdown may be over, but the backlog will take a while longer to clear. Speaking of which, markets will not get an NFP drop on Friday, despite it being the first of the month. Traders will instead have to wait for Tuesday the 16th of December, according to a post from the BLS. All-in-all, not much to grab attentions this week, although the fallout from the CME outage last Friday may prompt a measure of volatility later today. #Silver #Bitcoin #Metals

Leverage is one of the biggest attractions in forex trading, and one of the biggest dangers. In simple terms, it allows traders to borrow funds from their broker so they can control far larger currency positions than their account balance would normally allow. This ability to trade big with a small amount of money is a major reason why the forex market is so popular, especially among new traders looking for opportunities with limited capital. Forex leverage can be used on a variety of financial instruments including currency pairs, indices, commodities, and sometimes even cryptocurrencies depending on the broker. But forex is particularly known for offering much higher leverage than other markets. For example, where stock trading might offer leverage of around 5:1, forex brokers commonly offer 30:1, 50:1, or even higher ratios, giving traders significantly more purchasing power. However, this increased power comes with increased responsibility. Because profits are calculated based on the full size of the leveraged trade, gains can be amplified dramatically. Unfortunately, the same applies to losses. A small move against your position can wipe out your entire account if leverage is not handled carefully. This article will guide you through the essentials of forex leverage, what it is, how it works, why it can accelerate both profits and losses, and most importantly, how to manage it safely. By the end, you’ll understand how to use leverage as a tool rather than a trap, helping you make smarter decisions and protect your capital. What Is Leverage? Leverage in forex trading is a mechanism that allows traders to control larger positions in the market with a relatively small amount of capital. Leverage in forex trading is one of the main reasons this market is so accessible to beginners, it gives traders increased exposure without needing a large upfront investment. While stock market leverage might start at around 5:1, the forex industry is known for offering far higher ratios, sometimes reaching 30:1, 100:1, or even more depending on the broker and regulatory region. Leverage in forex trading is essentially a loan that your broker provides to help you open bigger positions. Instead of paying the full value of a trade upfront, you only need to deposit a percentage of the total trade size, known as margin. The rest is effectively borrowed from the broker. Example of How Leverage Works To understand this more clearly, imagine you want to open a position worth $10,000: With no leverage, you would need the full $10,000 in your account. With 10:1 leverage, you would only need $1,000 in margin. With 50:1 leverage, you would only need $200 in margin. With 100:1 leverage, you would only need $100 in margin. This difference explains why leverage is so attractive to forex traders. It greatly reduces the capital needed to access the market. Amplified Profits, and Losses Leverage in forex trading is powerful because it amplifies results. If the market moves in your favour, your potential profits increase because they are calculated on the full trade value, not just the amount you deposited. However, if the market moves against you, losses are also magnified, and traders can lose their entire account quickly if they misuse leverage. Because of this, leverage in forex trading should always be used with caution. While it opens the door to bigger opportunities, it also exposes traders to bigger risks. The next sections will explain how leverage works in practice and how to manage it safely. How Leverage Works in Forex Trading Leverage in forex trading works by allowing traders to borrow capital from their broker to open larger positions than their account balance would normally permit. This is especially common in highly liquid markets such as major currency pairs, where volatility is predictable and trading volume is high. In contrast, markets that are less liquid, more volatile, or more unpredictable typically come with lower leverage ratios, as brokers aim to reduce the overall risk. At its core, leverage functions as a simple financial tool: the broker provides a form of temporary loan that increases the trader’s buying power. You then use this borrowed capital to take advantage of market movements, but because the position size is larger, both profits and losses are magnified. How Leverage Works in Practice When you open a leveraged trade, you only deposit a portion of the total trade value. This initial deposit is called margin. The leverage ratio you select determines how much margin is needed. For example, a leverage ratio of 50:1 means that for every $1 of your money, you can trade $50 in the market. Once the trade is active, profits and losses are calculated based on the full position size, not the margin amount. This is why leveraged trading can be extremely rewarding when the market moves in your favour but equally devastating when it moves against you. Profit Scenario Example You open a $50,000 trade using 50:1 leverage. This means you only used $1,000 of your own money as margin. If the market moves 1% in your favour, you gain approximately: $50,000 x 0.01 = $500 profit This equals a 50% return on your $1,000 margin. Loss Scenario Example Now imagine the market moves 1% against you. Instead of losing $10 (which you would lose without leverage), you lose the same $500, half of your entire account in this example. This demonstrates the essence of leverage: it amplifies every outcome. With a small amount of capital, you can participate in large market movements, but this high level of exposure means risk management is essential. Brokers therefore design leverage systems with protective mechanisms to limit catastrophic losses. But even with these safety features, it is the trader’s responsibility to understand their chosen leverage ratio, margin requirements, and potential risks before placing any trade. Understanding Leverage and Margin Leverage and margin are closely connected concepts in forex trading and understanding how they relate to one another is essential for managing risk effectively. While leverage increases your exposure to the market, margin represents the amount of money you must set aside to support that leverage. When you use leverage, you are essentially borrowing money from your broker to increase your purchasing power. Margin is the portion of your own capital that the broker requires as a form of security, ensuring that you can cover potential losses. In other words, leverage expands your trading capacity, while margin is the collateral required to maintain that expanded position. As your leverage increases, the margin requirement decreases. This means you can control larger positions with less of your own money. However, this also amplifies potential returns and potential losses, making it vital for traders to understand how margin works before opening a highly leveraged position. Using margin allows traders to participate more actively in the market and potentially generate higher returns. But it also exposes traders to greater risk: if their account balance falls too low, they may face a margin call or even an automatic closeout from the broker. Because of this, leverage and margin must be managed together in a disciplined and informed way to avoid unexpected losses. What Is Margin? Margin is the amount of capital that a trader must deposit with their broker in order to open and maintain a leveraged trade. Instead of paying the full value of a position, traders only need to provide a small percentage of the total trade size. This deposit serves as collateral to cover any potential losses. Different brokers may apply different margin requirements based on their leverage offerings and regulatory standards. For example, brokers in regions with strict regulations might offer a maximum leverage of 30:1 on major forex pairs, meaning traders must provide a higher margin amount. Brokers operating under more flexible jurisdictions may offer 100:1, 200:1, or even higher leverage ratios, requiring only a small margin deposit to open a position. Before opening a trade, traders should carefully review their broker’s margin rules, including the stop-out level, margin call threshold, and minimum margin requirement. Understanding these conditions can help prevent unexpected liquidations. How to Calculate Margin Margin can be calculated using the following formula: Margin = (Trade Size ÷ Leverage Ratio) For example, if you want to open a $20,000 position using 50:1 leverage: Margin = 20,000 ÷ 50 = $400 This means you only need $400 of your own capital to control a $20,000 position. Maintaining Required Margin To keep a leveraged position open, traders must maintain the minimum required margin in their account. If your account balance drops below the required level due to floating losses, you may receive a margin call, or the broker may automatically close your positions. Margin Requirements and Leverage Ratios Below is a simple table showing how different leverage ratios correspond with margin requirements: Margin Requirement Leverage Ratio 1% 100:1 2% 50:1 3.33% 30:1 5% 20:1 10% 10:1 50% 2:1 Understanding margin is essential for every forex trader. Without this knowledge, traders’ risk unexpected margin calls, forced liquidation, or even complete account depletion. The next section will explore what a margin call is and how it occurs. What Is a Margin Call? A margin call occurs when your account no longer has enough available margin to support your open leveraged positions. In simple terms, it is your broker’s warning that your account equity has fallen too low, and you must take action to prevent your trades from being forcibly closed. A margin call typically happens when open positions move against you, and the losses reduce your equity to the broker’s minimum required level. When this happens, the broker alerts you, usually through a platform notification, instructing you to deposit more funds or close some positions to restore the required margin. When Can a Margin Call Occur? A margin call may occur when any of the following situations arise: Rapid price movements against your position: Sudden volatility can cause your equity to drop faster than expected. Using excessively high leverage: The higher the leverage, the smaller the margin buffer, making it easier to hit a margin call. Not using stop-loss orders: Without stop-loss protection, losing trades can quickly escalate. Failing to add funds or relying on unrealized profits: Unrealized gains don’t count until positions are closed. Holding multiple losing positions: Several small losses can combine to push your margin level too low. Overconcentration in one pair or asset: Putting too much capital into a single high-risk position increases exposure. Neglecting to monitor your margin level: Failing to check available margin or equity can lead to surprises. High-impact economic events: News releases can cause rapid spikes, widening spreads and causing large drawdowns. Understanding how margin calls work is essential because failing to respond in time can lead to an automatic closeout, the next topic we will cover. What Is a Margin Closeout? A margin closeout happens when your losses exceed the maintainable margin level, and your broker automatically closes one or more of your open positions to protect your account from falling into a negative balance. This isn’t a penalty, it’s a risk-control mechanism that brokers use to prevent your losses from exceeding your deposited funds. Example of a Margin Closeout Imagine you are trading with a $500 account and open a leveraged position worth $25,000 using 50:1 leverage. If the market moves sharply against you and your equity falls near the broker’s stop-out level, for example, 20% of required margin, the broker’s system will automatically close your trade. If the required margin for your position is $500, and your equity falls below $100, the system triggers an automatic closeout. This protects you from losing more than your available capital, but it also means you are losing position will be forcibly closed at the worst possible time. To avoid margin closeouts, traders must actively monitor their margin level, use stop-loss orders, and avoid oversized positions relative to their account balance. The next section will explain the costs associated with using leverage in forex trading. What Are Leverage Costs in Forex Trading? Leverage allows traders to open larger positions with smaller capital, but it is not free. There are costs associated with using leveraged positions and understanding them is essential for effective risk management. These costs may not always be obvious to new traders, but they can have a significant impact on overall profitability. The primary cost of leverage comes from overnight financing charges, also known as swap fees or rollover fees. When you hold a leveraged position overnight, your broker charges or credits your account based on the interest rate difference between the two currencies you are trading. Because leverage magnifies your position size, these costs are calculated on the full value of the trade, not the margin you deposited. Higher leverage typically results in higher financing costs because the borrowed amount is larger. While these charges may seem small at first, they can add up over time, especially for traders who hold positions for several days or weeks. How to Calculate the Cost of Leverage The cost of leverage can be calculated using your broker’s swap rate and the position size. While brokers provide the exact rates, the general formula looks like this: Leverage Cost = (Position Size × Swap Rate × Number of Days Held) For example, if you open a $50,000 leveraged position and the swap fee is -0.00015 per day, you will pay: $50,000 × -0.00015 = -$7.50 per day If you hold the position for five days, the total cost becomes -$37.50. This is why traders who frequently hold leveraged positions overnight, particularly swing traders and position traders, must always account for financing costs when calculating expected profits. How to Calculate Leverage in Trading Leverage in forex trading can be easily calculated using a simple formula. Understanding this calculation helps traders determine how much borrowing power they are using on each trade. Leverage Formula Leverage = Total Trade Value ÷ Required Margin This formula shows how many times larger your position size is compared to the margin you provided. Example of Calculating Leverage Suppose you open a trade with a total value of $30,000 and your broker requires $300 in margin to open that position. Using the formula: Leverage = 30,000 ÷ 300 = 100 This means you are trading with 100:1 leverage. Knowing the leverage ratio helps you understand the degree of risk and exposure you are taking on. Higher leverage means smaller price movements can have a significant effect on your account balance. The next section will explain the different types of leverage ratios and which types of traders they are suitable for. Different Types of Leverage Ratios Forex leverage comes in a variety of ratios, each offering different levels of risk, flexibility, and suitability depending on the trader’s experience and strategy. While higher leverage ratios allow traders to control larger positions with less capital, they also magnify the potential for significant losses. Understanding these ratios helps traders select the level of leverage that aligns with their goals, risk tolerance, and trading style. Low Leverage (1:1 to 20:1) Low leverage represents a conservative approach to forex trading. Because the trader is using more of their own capital and borrowing less from the broker, the risk of rapid losses is significantly reduced. This makes low leverage ideal for beginners, long-term traders, and anyone prioritising stability over high profit potential. Advantages: Lower risk, slower equity fluctuations, and greater control over drawdowns. Disadvantages: Lower potential profits, requiring higher capital to open larger positions. Suitable For: New traders, long-term traders, and risk-averse investors. Moderate Leverage (30:1 to 50:1) Moderate leverage is the most common among retail forex traders. It provides a balance between risk and reward, allowing traders to take advantage of reasonable position sizes without exposing their accounts to excessive volatility. Advantages: Balanced risk-to-reward potential, manageable margin requirements. Disadvantages: Losses can still accumulate quickly during volatile conditions. Suitable For: Traders with some experience who understand risk management. High Leverage (100:1 to 200:1) High leverage increases potential profits substantially but also greatly amplifies losses. Traders can control very large positions with relatively small amounts of capital, but even small price movements can cause significant drawdowns. Advantages: High profit potential, low margin requirements. Disadvantages: Increased likelihood of margin calls and account depletion. Suitable For: Experienced traders, scalpers, and those comfortable with fast market movements. Extreme Leverage (400:1 to 1000:1) Extreme leverage represents the highest level of risk. Traders using extremely high leverage can open enormous positions with minimal margin, but this also means a tiny market movement can wipe out an account entirely. Advantages: Maximum exposure and profit potential. Disadvantages: Extremely high risk, easy to trigger margin calls or account wipeouts. Suitable For: Highly experienced traders only, typically those employing ultra-short-term strategies. Leverage Ratio Comparison Table Type of Leverage Ratio Range Advantage Disadvantage Risk Level Suitable For Low Leverage 1:1–20:1 Lower risk, stable equity Lower profit potential Low Beginners, long-term traders Moderate Leverage 30:1–50:1 Balanced risk and reward Losses still possible during volatility Medium Intermediate traders High Leverage 100:1–200:1 High profit potential High chance of margin calls High Experienced traders, scalpers Extreme Leverage 400:1–1000:1 Maximum exposure Very high risk of account wipeout Very High Advanced traders only With these leverage ratios explained, the next section will explore which leverage ratio is most suitable for forex beginners. Which Leverage Ratio Is Best for Forex Beginners? For new traders entering the forex market, choosing the right leverage ratio is one of the most important decisions they will make. While high leverage may appear attractive due to its ability to amplify profits, it can also lead to significant losses, often much faster than a beginner expects. For this reason, beginners are encouraged to start with a conservative leverage ratio that prioritises account protection rather than aggressive profit potential. A leverage ratio in the range of 10:1 to 20:1 is generally considered the safest and most suitable for beginners. This level of leverage allows new traders to participate meaningfully in the market while maintaining a comfortable buffer against unexpected volatility. It reduces the likelihood of margin calls, minimises the chances of rapid account depletion, and helps beginners build healthy trading habits without feeling pressured by extreme fluctuations. Starting with lower leverage also encourages traders to focus on the fundamentals of trading, risk management, position sizing, and emotional discipline, before moving on to more advanced strategies that may involve higher leverage. Once a trader becomes more experienced, develops a consistent approach, and gains confidence in their risk-handling abilities, they can gradually move toward moderate leverage if it aligns with their long-term strategy. Read more:How to start forex trading: A beginner’s guide with 7 key tips How to Choose the Right Forex Leverage Strategy Selecting the right leverage strategy requires a thoughtful evaluation of several personal and market-related factors. Instead of relying on lists or fixed rules, traders should consider a holistic approach that considers their risk tolerance, trading style, account size, and market conditions. The first step is to assess your risk tolerance. Traders with a low tolerance for drawdowns or emotional pressure should naturally lean toward lower leverage levels, as these reduce the intensity of market fluctuations. A cautious mindset helps traders maintain consistency and avoid impulsive decisions made under stress. Your trading experience also plays an important role. Newer traders benefit from lower leverage because it gives them time to learn how the market behaves without exposing them to excessive financial danger. More experienced traders who have mastered risk management techniques may be better equipped to handle moderate or higher leverage, depending on their strategy. Next, consider your trading style. Scalpers often prefer higher leverage because they enter and exit trades quickly, relying on small price movements. Swing traders and day traders may prefer moderate leverage, as they hold positions longer and require a balance between risk and reward. Position traders, on the other hand, typically choose low leverage because they hold trades for extended periods and wish to minimise overnight financing costs. The typical leverage used for each trading style can be summarised as follows: Trading Style Typical Leverage Rationale Scalping High (100:1–200:1) Small moves require larger exposure Day Trading Moderate (30:1–50:1) Balanced risk for short-term trades Swing Trading Low to Moderate (20:1–40:1) Longer holds require stability Position Trading Low (1:1–10:1) Minimal risk and lower swap costs Account size is another major factor. Smaller accounts are more vulnerable to rapid losses, so they require conservative leverage to preserve capital. Larger accounts may have more flexibility in choosing moderate leverage levels, but even then, prudent risk management is crucial. Market volatility should also be considered. During major economic announcements, geopolitical events, or unexpected market disruptions, traders may benefit from reducing leverage to avoid sudden price spikes that could trigger margin calls. Stable market conditions may allow for slightly higher leverage, but caution is always advised. Finally, traders should follow their broker’s regulations and limits, as these are designed to protect clients from extreme financial risks. Regulated brokers often cap leverage on certain currency pairs, depending on their volatility, to ensure a safer trading environment. With a clear understanding of how to choose leverage strategically, the next section will explore the advantages and disadvantages of leverage in forex trading. Advantages and Disadvantages of Leverage Before using leverage in forex trading, it is essential to understand both its benefits and its risks. This section will give readers a clear overview of how leverage can work in their favour and how it can quickly become dangerous without proper risk management. Advantages of Leverage Leverage offers several benefits that make forex trading accessible and appealing to traders of all levels. One of the biggest advantages is capital efficiency. Traders can control large positions with a relatively small amount of capital, allowing them to participate in the market without needing a large account balance. This efficient use of capital also allows traders to diversify their positions more easily. Another major advantage is higher profit potential. Since profits are calculated on the full value of the trade, even small price movements can generate substantial returns when leverage is used correctly. Leverage also increases accessibility, enabling traders with smaller accounts to trade instruments that would otherwise be out of reach. Leverage offers flexibility as well, allowing traders to tailor their exposure based on their strategy and market outlook. It also enhances market participation, enabling traders to take advantage of short-term opportunities, news events, and technical setups without requiring full capital upfront. Additionally, leveraged CFD and forex trading do not involve ownership of the underlying asset, giving traders the freedom to go long or short easily. Disadvantages of Leverage While leverage can amplify profits, it also amplifies losses. The most significant disadvantage is the risk of amplified losses, where even small price movements can cause large drawdowns. This contributes to a high risk of margin calls, which occur when a trader’s equity falls below the required margin due to excessive losses. Leverage can also lead to rapid account depletion, especially when traders use excessively high leverage ratios without proper risk controls. Funding costs such as swap or rollover fees can accumulate quickly, particularly when holding large leveraged positions overnight. Traders may also experience emotional stress due to fast fluctuations in equity, leading to impulsive or poorly planned decisions. Another common disadvantage is the increased exposure to market volatility. Sudden price spikes or slippage during high-impact news events can wipe out accounts that use high leverage. Additionally, trading with a broker that offers extremely high leverage can encourage poor risk habits, making it easier for beginners to take on more exposure than they can safely manage. Understanding these advantages and disadvantages is essential for developing a healthy approach to leveraged forex trading. The next section will focus on practical ways to manage leverage-related risks effectively. How to Manage Forex Leverage Risk There are many leverage-related risks in forex trading and understanding how to manage them is essential for long-term success. Effective risk management helps traders protect their capital, make more rational decisions, and avoid the emotional stress that often accompanies large leveraged positions. Instead of relying solely on high leverage to seek quick gains, traders should combine thoughtful planning, strategic positioning, and disciplined execution. The first step in managing leverage risk is to develop a strong understanding of how leverage works. Knowing how leverage affects position size, margin requirements, and potential drawdowns helps traders make informed decisions before entering a trade. Once this foundation is in place, the next step is determining your personal risk tolerance. Traders who are uncomfortable with rapid swings in equity or the possibility of margin calls should opt for lower leverage to maintain stability. Using tools such as stop-loss orders and take-profit orders is another essential part of managing risk. A stop-loss order helps cap your losses by closing your position automatically once the price hits a predefined level. This prevents small losses from snowballing into catastrophic ones. A take-profit order works in the opposite direction, locking in gains before the market can reverse. These tools bring structure to your trades and reduce the emotional pressure of making decisions during volatility. It’s also important to limit leverage to levels that fall within your comfort zone. Traders should avoid using maximum leverage simply because it is available. Controlling leverage helps reduce drawdowns and provides a greater buffer against unexpected market movements. Diversification plays an important role as well. Instead of placing all available capital into a single highly leveraged position, traders can spread exposure across multiple currency pairs or different asset classes. This minimises the risk that one sudden market movement will wipe out the account. Regularly monitoring and adjusting leverage is equally important. Market conditions change constantly, and a leverage level that feels comfortable during stable periods may become too risky during high-volatility events such as economic announcements, geopolitical tensions, or unexpected news. Traders should adapt their leverage levels to match the current environment. By staying informed, using protective tools, and maintaining discipline, traders can harness the benefits of leverage while minimising the risks. The next section will address common questions about leverage to help traders build a deeper and more practical understanding of how it works. Read more:Forex risk management: 10 tips to manage 6 key risk types in trading What is Leverage - FAQ What is a good leverage in forex trading? A good leverage level depends on your experience, risk tolerance, and trading style. For beginners, a leverage ratio between 1:10 and 1:20 is generally considered ideal because it limits exposure while still allowing for meaningful market participation. Day traders may prefer 1:50 to 1:100, balancing risk and potential returns. More aggressive scalpers or experienced traders may use 1:100 to 1:500, but this requires strong risk management and a deep understanding of market volatility. Can I trade forex without leverage? Yes, you can trade forex without leverage, but you will need substantially more capital to open positions. Trading without leverage allows you to minimise risk and avoid margin calls entirely. However, your potential profits will also be smaller since they are based solely on your actual capital rather than an expanded position size. Can I calculate the leverage ratio by myself? Yes. You can calculate leverage easily using the formula: Leverage = Total Trade Value ÷ Required Margin Understanding this calculation helps you see exactly how much exposure you are taking on each position. If you know the size of your trade and how much margin your broker requires, you can determine your leverage level in seconds. What is position sizing in forex? Position sizing refers to determining how large your trade should be based on your account balance, risk tolerance, and strategy. Good position sizing ensures that you don’t expose too much of your capital to a single trade. It helps traders maintain consistency, avoid emotional decisions, and reduce the likelihood of margin calls. How do I choose my leverage? Choosing leverage depends on your personal risk appetite. Conservative traders may choose smaller leverage, such as 10:1 or 20:1, focusing on long-term stability. Traders with higher risk tolerance or faster trading styles may opt for higher leverage ratios. The market traded also influences leverage choices—major pairs may allow higher leverage, while volatile pairs often require lower ratios. What happens if you lose leverage? If you experience losses while using leverage, your account equity decreases much faster than with unleveraged positions. As losses grow, your available margin shrinks, increasing the risk of a margin call or forced closeout. If losses exceed the maintainable margin level, the broker will automatically close your positions to prevent your account from going negative. What is the best leverage ratio for beginners? For beginners, 1:10 to 1:20 is generally the safest range. This level of leverage strikes a balance between allowing you to participate in the market and keeping risk at a manageable level. It also helps new traders develop strong risk management habits before experimenting with higher leverage. Read more:How to start forex trading: A beginner’s guide with 7 key tips What is the maximum leverage allowed by forex brokers? The maximum leverage varies by broker and regulatory region. Brokers regulated in stricter jurisdictions such as the UK, EU, and Australia typically cap leverage at 30:1 for major currency pairs. Brokers in less restrictive regions may offer leverage as high as 400:1 to 1000:1, although these levels come with significantly higher risk and require extreme caution. Read more:Top forex brokers to trade with in 2025

  ●  Silver nears record highs   ●  Platinum surges higher   ●  Crude oil slumps Silver outshines other metals Silver quietly pushed into record high territory this morning. The white metal has seen serious buying pressure since Monday and is already up 8% this week. Silver broke through $54 per ounce early in the Asian session this morning, coming close to its mid-October highs. The move comes as silver stockpiles in Shanghai hit their lowest levels in a decade, with large volumes being shipped to the London vaults, which have also experienced tightening supplies in recent months. Chinese inventories were low enough to provoke backwardation conditions, whereby the current spot price of silver rose above those quoted in futures markets – a highly unusual situation. Silver is in high demand worldwide, from speculators and industry alike, and suppliers are struggling to keep up. The rise in silver has been matched by platinum this week, which breezed past $1,600 an ounce yesterday and is up 8% since Monday. While gold has also performed well over the past few days, the precious metal has lagged behind other metals, unable to break through $4,200 as of yet. Crude oil prices in the gutter Oil prices are heading for their fourth straight monthly loss, with Brent Crude hovering around $63 and WTI now down to $59 a barrel. Since April, OPEC+ has continued to increase its combined output capacity, which has been the main culprit in subduing crude prices. Although the organisation is expected to pause such increases until next year, another factor may soon come into play. The ongoing conflict in Ukraine may finally be showing signs of winding down, as Russian President Vladimir Putin recently signalled a willingness to discuss a proposal put forward by the United States. Should the conflict reach some kind of resolution, it is likely that sanctions against the Russian economy may be lifted, in which case Russian oil and gas will once again flow into global markets. The added supply could potentially crush crude prices even further, although it is unclear just how effective the sanctions were to begin with. On the other hand, winter is just around the corner, further complicating supply and demand dynamics. #Silver #Oil

  ●  Google in talks with Meta   ●  Investors look further afield   ●  Rate cut odds continue to climb Google woos Meta Nvidia (NVDA) is facing mounting competition from fellow tech heavyweights. A report issued yesterday suggests that Meta Platforms (META) is in talks with Alphabet (GOOGL) to use Google’s AI chips within its own data centres. The development is interesting because until now, Google has only ever rented access to its chips, so the new arrangement would indicate a more aggressive stance for Google within the AI sector. If confirmed, the deal would be worth billions, but more importantly would muscle in on Nvidia’s territory, potentially snatching a sizeable chunk of the chipmaker’s annual revenue. Nvidia and Advanced Micro Devices (AMD) both took the news badly yesterday, resulting in 2.6% and 4.2% losses respectively. Meta, on the other hand, continued to reverse its recent downtrend, closing the day 3.8% higher, while Alphabet pushed to new record highs at $323 per share. Nvidia has been vocally defensive against claims of an AI bubble in recent weeks, even sending a note to financial analysts on Wall Street over the weekend, which attempted to dispel some of the accusations levelled against them. Such criticisms include parallels with Enron, which was famously involved in an accounting fraud scandal. Investors pivot away from hype stocks The changing tides evened out in the end, with the Nasdaq Composite managing to eke out a 0.7% gain on the day. The S&P 500 fared better with a 0.9% close in the green, while the Dow Jones shone the brightest with a 1.4% daily rise. Zooming out even further, the small-cap Russell 2000 index shot up 2.1% yesterday, maintaining the momentum it has enjoyed since last Friday. The pivot away from big tech towards the more understated elements of the stock market reflects a change in sentiment, in part caused by renewed expectations of a December rate cut. FedWatch is now pricing the odds of a 25-bps cut at 85% following comments from Governor Christopher Waller on Monday, who said that he would be advocating for a cut, based on his concerns about the US labour market. Cheaper financing is disproportionally beneficial to smaller companies, and the additional liquidity should help with consumption in general. #Nvidia #Google #Meta

Every four years or so, the cryptocurrency market experiences an eye-watering increase in prices, with each new peak dwarfing the preceding cycle. Bitcoin first breached $1,000 back in 2013. Four years later, in 2017, prices hit $20,000. In 2021, Bitcoin would go on to reach $69,000. This year, prices have ventured far beyond the six-figure mark, boasting $126,000 on some exchanges. Price action aside, each cycle brought new ideas and technology to the table, resulting in novel tools and memorable talking points. Pioneering developments have gradually pushed the industry forward, which has inarguably come a long way since 2009, but after all these years, it is time for some answers. Crypto cannot limit itself to a marketplace of tokens and coins. What comes next? What does crypto have to offer the world? What is the end game? Stage one: public awareness (2013) In the very early days of crypto, Bitcoin was a very niche hobby. The project was embraced by nerds, schizophrenics, libertarians, and later on by narcotics enthusiasts on the silk road marketplace. An unlikely alliance, but one strong enough to nurture Bitcoin through infancy, and to do so in relative secrecy. Bitcoin did not attract mainstream attention until its price tag forced it into the spotlight, by which time the headlines wrote themselves. Easy to sneer at a few dollars; harder to dismiss hundreds; impossible to ignore $1,000 per coin. Beyond the price itself, there was not much to talk about. The technology itself had been set in stone from the genesis block, and while development continued, the general selling point did not change. After hitting four figures, Bitcoin would enter its first real bear market. The following cycle would be very different. Stage two: Ethereum and the ICO craze (2017) Up until 2017, Bitcoin represented 95% of the total crypto market cap. There was very little going on at the time. Other cryptocurrencies had surfaced over the years, but few had any lasting impact, and fewer still had any genuine utility. Ethereum, first launched in 2015, changed the landscape forever in that regard. The wave of development sparked by the first major smart contract platform caused a massive dent in Bitcoin’s market dominance, one from which it would never recover. For the first time, developers could launch projects without having to code their own blockchain. It was trivial to do so. The Ethereum blockchain become host to a vast number of smart contracts, all competing for network usage, and contributing to the rapid appreciation of the ETH token. The ERC-20 standard ensured smart contracts, wallets and exchanges all spoke the same language, fostering an ecosystem that promoted rapid technological expansion. Inevitably, such growth attracted an equal measure of greed. The sector was booming, reminiscent of the dot-com bubble at the turn of the millennium. It was so easy to make money by spinning up a half-baked idea and selling it to the masses. Many parties did exactly that. Initial coin offerings, or ICOs, became the go-to funding method. From the developer perspective, launching an ICO was a rock-solid way of securing funding. In exchange, investors were rewarded with the project’s token. From mid-2017 onwards, ICOs were all that mattered. Thousands were launched. New tokens flooded the market on a daily basis. The underlying technology barely mattered. Participate in the ICO, get the tokens, ride the wave, sell for 1000% profit, on to the next launch. It was a different time. Some of these projects persist to this day, but the vast majority were forgotten as quickly as they surfaced, long since abandoned to the cryptographic dustbin. Rightfully so. Some of the ICOs floating around during this period were such brazen scams it’s a miracle the SEC didn’t shut down the entire industry. Supply chain solutions for fruits and vegetables, literal Ponzi schemes, vanity projects to build floating casinos, imaginary dev teams comprised of stock photos, blatant lies about partnerships, fake giveaways... It was an absolute joke. Sure enough, by early 2018, the entire market deservingly went up in flames after Bitcoin topped out the month prior. It was time for a period of reflection. Stage three: DeFi, meme coins and NFTs (2021) Over the next couple of years, a number of development teams put their collective heads down and got busy. Once again, the bear market separated the wheat from the chaff and something actually useful emerged from the wreckage. Suddenly, decentralised finance, or DeFi, was the only thing people were talking about. Decentralised exchanges, synthetic assets, liquidity providing, yield farming, lending and borrowing, decentralised insurance… The list goes on. Useful, pragmatic tools were being created. Crypto could be used for something useful again. In 2020, “DeFi summer” successfully reanimated crypto’s lifeless corpse and brought genuine innovation and excitement back into the industry. Alas, this is crypto. The path described above is far too idealistic. Sensible heads prevailed only too briefly, and soon enough reckless degeneracy flourished anew. Time for idiotic memes, dog coins and poorly drawn cartoon characters. The ICO phase may have been a little flimsy on the technical side, but most projects at least pretended to bring something new to the table. The 2021 hype cycle dropped such pretences altogether. After years of dormancy, Doge exploded back on to the scene out of nowhere. From less than a cent in early 2021, the famous Japanese dog climbed all the way to $0.70 by May. A number of other animal-themed coins quickly got in on the action. Shiba Inu was the next in line, followed by slew of other dog coins, followed by meme after meme trying to extract as much money out of the crypto markets as possible. Who could forget DogeBonk? The token featuring a dog wielding a baseball bat? What about PregnantButt? Who could possibly have seen that rug pull coming? Attention spans are not what they used to be. People quickly got bored of dog coins, moving on to the next distraction: Non-Fungible Tokens. It is easy to forget, several years later, just how big NFTs were back in the summer of 2021. Cryptopunks and the bored ape yacht club started things off, with whales clamouring to spend literally millions of dollars on mediocre pixel art, but soon enough every celebrity desperate enough for attention was hopping on board the NFT train. The trend proved to be equally short-lived. The next few years would absolutely destroy NFT valuations. Among some collections, prices fell 90% within a year; 99% within two. Celebrities and traders alike would get absolutely destroyed by the catastrophic collapse in prices. Nothing of value was lost. Stage four: confusion (2025) The past two cycles had very memorable narratives associated with them. What about this year? What have been the main drivers so far this cycle? If nothing immediately springs to mind, then you are not alone. One might offer crypto ETFs, but the first of these dates back to 2021 – old news in the grand scheme of things. Institutional strategic reserves is a more recent turn of phrase, but not exactly headline magic. RWAs, or the tokenisation of real-world assets, sometimes features in various conversations, but sparingly at best. Even $TRUMP, the US president’s official meme coin, quickly faded out of public consciousness following launch, as reflected in its price. The point is that, barring a few exceptions, the past cycle has felt very dull compared to 2017 and 2021. Ask any crypto veteran and they will freely admit that the 2025 market has felt completely lifeless relative to previous periods. Bitcoin has seen multiple record highs this year, but then again, what market has not? Every major stock index in the world would have been a reasonable investment, to say nothing of the eye-watering rallies in gold and silver. And while the price action in Bitcoin has been a little on the soft side, the altcoin market has performed atrociously so far this year. Crypto cycles have historically mapped pretty well onto the wider US business cycle, illustrated by manufacturing PMI data. The problem is that the most recent business cycle has extended far beyond its typical length. If the business cycle can lengthen, so too can the crypto cycle. As mentioned above, cryptocurrency markets are not currently exhibiting their typical late-cycle exuberance. Who knows? A lot can happen in a month. The future of crypto At this point it is worth reflecting on the overarching evolution of cryptocurrencies as a whole. What is the goal here? Bitcoin absolutely started with pure intentions in mind, and was later followed in the same vein by various infrastructure-oriented projects, but the fact is that for much of its history, the crypto sphere has been tainted by scams, conmen, immaturity and outright idiocy. It has had over 15 years to prove itself. Where are the results? These days, Bitcoin is barely more than an investment vehicle for exchange-traded funds. A household name to capture institutional investment and retirement fund flows. It is so heavily tied to the greater macro environment that a poor NFP release can affect crypto prices. The whims of BlackRock and Vanguard are far more impactful than anything relating to the underlying tech. Influencers cheer on every successful ETF launch. Price is all that matters. This is obviously not what Satoshi Nakamoto had in mind. The cypherpunks had their chance. The idealistic atmosphere of the early days has all but vanished. The crypto revolution has utterly failed. The altcoin market has likewise become nothing more than a wealth extraction mechanism. Fundamentals do not matter. They never have. A glance at the top 25 coins on Coinmarketcap is proof enough. This creates a problem. Advertising a collection of ghost chains and meme coins as the pinnacle of what an industry has to offer inevitably scares away new investment. Each project becomes a walled garden, lacking any significant liquidity or outside interest. Moreover, the amount of capital lost to collapsing platforms and incompetent hedge funds has driven many investors away for good. Painting with broad strokes, the crypto industry is a joke. It is not all doom and gloom. In many ways, the current situation in crypto feels eerily similar to the 2019-2020 bear market. Under the surface, away from the hype and the headlines, there is a lot of work being done. Development grinds on. Ever more complex financial infrastructure comes to light. Far removed from the diligent dev teams, an equally important piece of the puzzle is also seeing significant progress: regulation. So much has been achieved on the regulation front in the past year. This is an element that has long held back the crypto industry, but the barriers are finally being broken down, one by one. The Federal Reserve hosts regular meetings with people deeply embedded within the crypto sphere. Conversely, people from traditional finance can now been seen on speakers lists at a number of crypto conferences. Banks, and the organisations that maintain the messaging infrastructure they rely on, are building the next layer of global connectivity. In more concrete terms, the GENIUS Act was a major step towards the widespread use of stablecoins. The CLARITY Act, whenever it may pass, will characterise non-stablecoin digital assets as commodities, granting cryptocurrencies some much-needed legal leniency. There are many more steps to come. The progress is not contained to the US either, as the United Kingdom, Japan, Hong Kong and Singapore all appear willing to embrace novel financial technologies. Crypto needs to make a choice: continue down the same shady path, or elevate itself to a position of leadership and strive for something greater. The internet is not merely a collection of domain names, swapping hands for ridiculous sums of money. In the same way, crypto needs to be more than a token market. The traditional financial world is screaming out for more efficient capital markets. The streamlined infrastructure offered by certain elements of the crypto industry could be just the ticket. Forget the price for a minute, crypto needs to sort itself out and ruthlessly purge the worthless, opportunistic elements that have sullied the industry in recent years. Time for the big boys to take over.