What is 1:1 Oil Leverage for $100 Mean?
Oil Trading Leverage in oil is the ratio of a oil trader's money to that of the borrowed trading capital which has been borrowed from the broker.
1:1 oil leverage basically means that as a trader you are not using any oil leverage from your oil broker
Therefore if a trader has $100 in their oil account they will not have borrowed any oil leverage - using 1:1 oil leverage and therefore after oil leverage of 1:1 they will have $100*1:1 oil leverage and this will be equal to $100 dollars of their own oil capital.
Crude Oil Money Management Guide-lines for Trading with 1:1 Oil Trading Leverage
When trading oil with 1:1 oil leverage you should create your oil money management rules that you will use to manage your oil account capital. This set of oil money management rules should be written in your oil plan. If you are a beginner trader wanting to open a $100 dollar oil account & you do not know what oil money management rules are, you can use the learn oil tutorials below to learn about what is oil money management?
How to come up with oil money management rules for trading a 1:1 Oil Trading Leverage Trading Account.
Trading Crude Oil with Oil Trading Leverage
The more oil leverage you use the greater the profit or loss
The less oil leverage you use lesser the profit or loss
It is therefore better to use less oil leverage so as to minimize the risks involved. The higher the oil leverage used the higher the risk. This is one of the oil leverage rules not to trade with more than 5:1 crude trading leverage.
In oil leverage rules: It is always advisable to stay below 10:1 which is still high, most professional money managers use 2:1 in their oil trading account.
To Learn and Know More about Crude Oil Trading Leverage & Margin - How Do I Read the Topics Below:
Crude Oil Trading Leverage and Margin Described
