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High Leverage

Feb 07, 2019 at 07:48
4,158 Views
132 Replies
Member Since Jan 31, 2017   193 posts
Mar 21, 2019 at 07:30
WinterWalker posted:
With 1:500 aren't you worried that a spike in the price could cause massive losses? I read that you can lose more than your deposit, doesn't that mean that if you enter a 1 Lot trade and it blows through your stop loss you can loss everything on your account and then the broker can come after you for more money.

I think when they trade with tiny deposits it is not a problem, and usually only low-grade brokers provide leverages 1:500 and more. Such kind of brokers doesn't have a power to make clients give their extra losses back to the broker.
Trading system developers and strategy providers.
Member Since Jun 07, 2017   10 posts
Mar 21, 2019 at 07:37
Hey guys , about leverage
If I have 1:500 leverage and use 0.1 for each 10k , is it the same for example if I have leverage 1:250 and use 0.05 for each 10k ?.. is all conditions and margin and free margin the same or it doesn't work like that ?
Member Since Mar 21, 2019   11 posts
Mar 22, 2019 at 08:53
Doesn't work like that. A 0.1 Lot trade is the same on a 1:1 leverage or a 1:1000 leverage. You are still buying (or selling ) 0.1 Lot. The leverage will only affect how much money you need in your account in order to trade 0.1 Lot (this is the margin)
Member Since Jun 07, 2017   10 posts
Mar 22, 2019 at 09:14
I mean the same margin and level or margin
Member Since Aug 27, 2018   9 posts
Mar 24, 2019 at 07:04
In your example the margin used would be the same. There are many margin calculators on the web that you can find and use to check anything you need about margin and leverage. I find them very helpful
Member Since Apr 18, 2017   920 posts
Mar 25, 2019 at 12:10
WinterWalker posted:
With 1:500 aren't you worried that a spike in the price could cause massive losses? I read that you can lose more than your deposit, doesn't that mean that if you enter a 1 Lot trade and it blows through your stop loss you can loss everything on your account and then the broker can come after you for more money.

I also think, 1:500 is an aggressive trading leverage! Money management is the key in trading industry.
Member Since Feb 08, 2019   21 posts
Mar 25, 2019 at 12:16
AniLorak posted:
WinterWalker posted:
With 1:500 aren't you worried that a spike in the price could cause massive losses? I read that you can lose more than your deposit, doesn't that mean that if you enter a 1 Lot trade and it blows through your stop loss you can loss everything on your account and then the broker can come after you for more money.

I also think, 1:500 is an aggressive trading leverage! Money management is the key in trading industry.

I don’t believe the broker will ever come after you got money no. It don’t work like that you just blow the account.
Member Since Apr 18, 2017   920 posts
Mar 26, 2019 at 06:46
CRPA9 posted:
AniLorak posted:
WinterWalker posted:
With 1:500 aren't you worried that a spike in the price could cause massive losses? I read that you can lose more than your deposit, doesn't that mean that if you enter a 1 Lot trade and it blows through your stop loss you can loss everything on your account and then the broker can come after you for more money.

I also think, 1:500 is an aggressive trading leverage! Money management is the key in trading industry.

I don’t believe the broker will ever come after you got money no. It don’t work like that you just blow the account.

Basically, the intention of market maker broker is killing the trader’s equity even providing aggressive trading features like bonus and leverage! So, traders should be aware of their trading plan.
tjat
forex_trader_652796
Member Since Jan 20, 2019   5 posts
Mar 26, 2019 at 09:10
Its ok if you have 1:500 leverage or even biger that doesn't mean you have to use it to trade big lot sizes.
If you are a signal follower then you should pay attention signal provider leverage if its high leverage the signal provider is able to do big lot sizes and that you should be considered when selecting the signal
Member Since Apr 18, 2017   920 posts
Mar 28, 2019 at 12:31
tjat posted:
Its ok if you have 1:500 leverage or even biger that doesn't mean you have to use it to trade big lot sizes.
If you are a signal follower then you should pay attention signal provider leverage if its high leverage the signal provider is able to do big lot sizes and that you should be considered when selecting the signal

It’s a good point; yes I see number of traders missed out that point; they only focus on the return unless focusing on others important parameters.
Member Since Aug 09, 2017   785 posts
Apr 05, 2019 at 11:35
which leverage is more appropriate for beginners level , it depends on trading conditions , if trading in a demo 1:10 is comfortable  and in live i don't support to use leverage , because it contains huge risk for all time. 
Member Since Aug 11, 2017   886 posts
Apr 06, 2019 at 10:40
Many experts suggest not to trade with high leverage, but In order to me, if traders have confidence with their trading strategy and high amount of money in deposit account, surely they can choose high leverage ratio because it will give them no problem. But if have small balance deposit only while trading system is not too good , small leverage ratio could help traders minimize the ratio.
Member Since Feb 20, 2019   11 posts
Apr 07, 2019 at 05:50
leverage is irrelevant really. leverage will determine the maximum Lot size you can open but really your risk should be focused on using an appropriate Lot size. Even with a huge leverage account you can use a small lot size. I prefer this way to trade, High leverage but lot lot
Member Since Aug 09, 2017   785 posts
May 01, 2019 at 08:22
i have seen most of the traders above all beginners level consider high leverage as a much risk but i don't consider it , if there is any risk it is completely with non-sense planing with zero risk management plan.  
Member Since Apr 23, 2019   5 posts
May 02, 2019 at 07:23
Leverage can also refer to the amount of debt a firm uses to finance assets. When one refers to a company, property or investment as 'highly leveraged,'
Member Since Aug 11, 2017   886 posts
May 07, 2019 at 07:28
which leverage is more appropriate for demo trading can anyone make sure ? according to me, 1:50 is best.  
Member Since Aug 09, 2017   785 posts
May 17, 2019 at 11:46
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.
Member Since Apr 23, 2019   32 posts
May 23, 2019 at 04:52
Leverage can also refer to the amount of debt a firm uses to finance assets. When one refers to a company, property or investment as 'highly leveraged,' it means that item has more debt than equity.
Member Since Oct 20, 2018   300 posts
May 25, 2019 at 16:42
Money management is very important. In example i`m using 1-2% for each trade and using 1:500 leverage.
momchil_slavov@
Member Since Apr 18, 2017   920 posts
May 27, 2019 at 18:20
momo3HC posted:
Money management is very important. In example i`m using 1-2% for each trade and using 1:500 leverage.

Then why you are using 1:500 trading leverage? It’s too much aggressive trading leverage!!
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