Leverage for pipsing.

A trend does not always have a clear direction; there are periods when the price moves in a horizontal direction for several days.

Moreover, its fluctuations in one direction do not exceed 10 points (with a four-digit quote), in this case there are two options - change the trading asset or use pips.

It is during a flat that this strategy gives the best results, since rate fluctuations are repeated according to the same pattern.

But to make money on a 10-point movement, you need to have a lot of money or use a lot of leverage.

Since if we take the euro/dollar currency pair as an example, a price change of 1 point will bring you 10 dollars if you opened a deal with a volume of 1 lot.

And when volatility at 10 points you will be able to earn 50-70 dollars, since it is simply not possible to catch the moment of reversal, and don’t forget about the spread.

How much money do you need and what leverage to trade one lot?

It all depends on what funds you have and what task you set for yourself - stable earnings or accelerating your deposit .

• The best option is a leverage of 1:100 and a deposit of $1,200 if you decide to trade the euro/dollar currency pair.

In this case, the risk of losing your deposit is minimal, and you can earn 4-6% from one transaction. • Maximum option - it is often used on cent accounts , leverage equal to 1:1000 in this case, for trading with a volume of 1 lot you will need only $120.

In this case, you will be able to get about 40-60% from one trade, but you will be trading on the edge, since a good candle against the position will instantly destroy your deposit.

• Fantastic - some brokers offer their clients a leverage of 1:2000, in theory it can also be used, but on an even more sluggish current trend and with a five-digit quote value.

Since it is technically difficult to set a stop loss when pipsing, it is recommended to trade with less than a full deposit, that is, keep part of the funds in another account, then you will have a chance to continue trading in case of an unsuccessful set of circumstances.

It should be noted that the volume of one lot is just an example and is not mandatory, you can trade much larger or smaller volumes depending on your preferences and deposit size.