What Is a Good Debt to Equity Ratio for Forex Trading?

Estimated read time 4 min read

A good debt to equity ratio for forex trading is generally considered to be anything below 1:3. This means that for every dollar you owe in debt, you should have three dollars worth of equity. This ratio is necessary to ensure that you have enough equity in your positions to cover any potential losses. Having too much debt relative to your equity can be a risky proposition, as it can lead to overexposure and heightened levels of risk. Always calculate your net debt to equity ratio before entering into trades to ensure that it falls within your desired standards.