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Low leverage is dangerous, why?

togr (togr)
Aug 21 2018 at 13:35
4862 posts
Nope.
Leverage does not control the loss on your account.
It simply determines margin needed to open and maintain position.

Bohdan73 (Bohdan73)
Aug 22 2018 at 06:38
51 posts
togr posted:
Nope.
Leverage does not control the loss on your account.
It simply determines margin needed to open and maintain position.

Exactly!
Risk management applies the same way to stocks trading (no leverage) and CFD trading (with leverage) regardless.
It's all up to the trader to handle the risk.

Trade with determination!
estraub
Sep 02 2018 at 06:31
23 posts
Bohdan73 posted:
togr posted:
Nope.
Leverage does not control the loss on your account.
It simply determines margin needed to open and maintain position.

Exactly!
Risk management applies the same way to stocks trading (no leverage) and CFD trading (with leverage) regardless.
It's all up to the trader to handle the risk.

Amen!

Dzintars99 (Dzintars99)
Sep 05 2018 at 12:59
10 posts
togr posted:
Nope.
Leverage does not control the loss on your account.
It simply determines margin needed to open and maintain position.


Agree with you. 100%
People think small leverage so you lose and earn more slowly, but in fact you either lose time, because you can earn normally with such an account only after a long time, if you can.
In this case it will be more profitable to put this amount in a bank.
Either you lose a lot of money, because, as you said, you need to put a large amount for trading.
As a result of these restrictions, they simply throw out smaller players from the market, leaving only large ones.

nick3232
Sep 05 2018 at 14:41
160 posts
leverage is how much the bank is ready to loan you money in order for you to trade larger lots size,thus (POTENTIAL ) to earn more profit,IF your trading system is sound

alexforex007
Sep 05 2018 at 16:44
774 posts
Very good advice and opinions from all of you. I may act that leverage is controlled by the size of your position in relation to your account size. On the other hand, low or high leverage really doesnt make a difference if you dont have a consistent trading system.

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