Dear Friend, I want to tell you that mostly brokers offer you high leverage and you can trade with small capital with the facility of leverage, usually I advice traders to set their leverage to 1:200, because in my view, it is best for them, but if traders use 1:500 then it is also ok, I think you all have noticed this thing that mostly good and regulated brokers offer not more than 1:500 leverage and when your equity increase, they reduce the leverage.
Another thing that I would like to share with you, mostly traders think that they will trade in gold with the same leverage, but they should keep this thing in their mind that whenever they open gold or any other metal order, the broker automatically set the leverage to 1:50 from whatever you set, and then you see that you can not open more than one or two orders, this all happen due to leverage, so it is better to understand how leverage works and what leverage is available. Gold market is different from forex market, mostly traders think that gold and stocks are available in one meta trader platform then it is included in forex, but it is a big mistake that should be highlighted.
I would like to advice my readers that you should set low leverage, to secure your trades and capital, it will be better if you do proper money management, we use high leverage, because our capital is too small, so invest big and set leverage low.
