High Leverage

AniLorak posted:

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!!

Because it`s work fine for me and my money management.

high leverage only need when you use Martingaile to open more and more orders at all pairs to recovery losses from drawdown. otherwise you dont need leverage if you have really good entry in profit

apple1st posted:
high leverage only need when you use Martingaile to open more and more orders at all pairs to recovery losses from drawdown. otherwise you dont need leverage if you have really good entry in profit

Don`t think so but everybody`s got his own opinion.

momo3HC posted:

apple1st posted:
high leverage only need when you use Martingaile to open more and more orders at all pairs to recovery losses from drawdown. otherwise you dont need leverage if you have really good entry in profit

Don`t think so but everybody`s got his own opinion.

I see; only new traders prefer high leverage! Pro traders always choose small leverage since their own strength is their trading knowledge & experience!

AmDiab posted:

momo3HC posted:

apple1st posted:
high leverage only need when you use Martingaile to open more and more orders at all pairs to recovery losses from drawdown. otherwise you dont need leverage if you have really good entry in profit

Don`t think so but everybody`s got his own opinion.

I see; only new traders prefer high leverage! Pro traders always choose small leverage since their own strength is their trading knowledge & experience!

That doesn't make sense. If you have knowledge and experience then you can make more money with high leverage. I do not know what anyone would choose lower leverage

EmilioV posted:

AmDiab posted:

momo3HC posted:

apple1st posted:
high leverage only need when you use Martingaile to open more and more orders at all pairs to recovery losses from drawdown. otherwise you dont need leverage if you have really good entry in profit

Don`t think so but everybody`s got his own opinion.

I see; only new traders prefer high leverage! Pro traders always choose small leverage since their own strength is their trading knowledge & experience!

That doesn't make sense. If you have knowledge and experience then you can make more money with high leverage. I do not know what anyone would choose lower leverage

But the point is; knowledge traders don’t rely on leverage they rely on their trading skill and as I see; they follow the rules of money management so honestly!

AmDiab posted:

momo3HC posted:

apple1st posted:
high leverage only need when you use Martingaile to open more and more orders at all pairs to recovery losses from drawdown. otherwise you dont need leverage if you have really good entry in profit

Don`t think so but everybody`s got his own opinion.

I see; only new traders prefer high leverage! Pro traders always choose small leverage since their own strength is their trading knowledge & experience!

This is the cause - why 90% of beginners loss in the forex trading.

90% beginner lose because they do not now how to trade. Nothing to do with leverage

Yes; they start their live trading too early! Don’t have any idea on technical or fundamental trading but try to make money!

Using leverage is part of knowing how to trade. There are many other areas as well though.

TeamNotreDame posted:
Using leverage is part of knowing how to trade. There are many other areas as well though.

Yes it is! Even, it’s very much crucial feature for the retail traders! Whatever; using high trading leverage and depending on it; is a problem!

Start with small leverage and only increase leverage with experience if your consistent and your strategy can handle it. look at my profile for a good example.

Before going in depth about high leverage, it is essential to understand what leverage is. Leverage is a kind of concept that gives you the choice of borrowing a certain amount from your broker to expand the boundary of your investment budget.

Leverage can be high or low, depending upon the trader’s choice. However, leverage is a double-edged sword. If it can multiply your positive returns, then it can also increase your losses to manifold. Taking a very high leverage will cost you to handle a lot of risk too. If you do not screen the markets properly before investing, you can incur heavy losses. A slight price movement in a direction opposite to your expectations, can deplete your entire account.

So try and use leverage to your advantage. Start with little doses and try high volumes of leverage only if you feel you are thorough with the market requirements.

Leverage implies the borrowed capital from the broker for investing.
It acts as an additional capital for the investor. Different brokers offer different leverages.

Since leverage allows traders to trade larger positions, the chances of profit are also high .
However , higher the leverage the more the risk involved.
This way, higher the risk, more the profit.

So its better to prefer a higher leverage for the investors keeping in mind the amount of risk associated with the same.
The optimal leverage is 1:100.

High leverage is like a double edged sword. Professional traders value the high leverage because it allows them to trade large positions i.e. (more contracts or shares etc) with less trading capital. Indeed it is beneficial because higher the leverage,higher the profit but potential losses would also be that much.

Guys,

traders are undercapitalized so they overtrade their accounts.
Now imagine world without leverage to trade 1 lot EURUSD you would need 100,000 EUR account just for margin,
yet the profit would be the same like trading 1 lot EURUSD on 1,000 EUR account.

So without leverage we are risking that 100,000 EUR as everything can happen and is happening on Forex. So ANY funds you deposit to your broker are at rsik.
With leverage we are risking just that 1,000 EUR.

The profit and losses are determined by stop losses and take profits, not the leverage.

In our example if we put 10.0 pips stop losses and take profits we are losing or getting just $100 in both cases.

That is generally true but even stop losses can be blown through in black swan events. The massive move on CHF a few years ago caused a lot of problems for traders and for brokers. Stops were just blown straight through and people couldn't close their positions

QuincyMCQuincy posted:
That is generally true but even stop losses can be blown through in black swan events. The massive move on CHF a few years ago caused a lot of problems for traders and for brokers. Stops were just blown straight through and people couldn't close their positions

I was trading during Swiss black swan event. It is true the positions were not closed at their stop losses and I was trading at 1:500 leverage account. Yet I have survived that event without loss as I traded responsibly. Trade size and money mgmt are other ways to balance your risk. Leverage is not meant to work as your account protection.

smith_fx posted:
Leverage implies the borrowed capital from the broker for investing.
It acts as an additional capital for the investor. Different brokers offer different leverages.

Since leverage allows traders to trade larger positions, the chances of profit are also high .
However , higher the leverage the more the risk involved.
This way, higher the risk, more the profit.

So its better to prefer a higher leverage for the investors keeping in mind the amount of risk associated with the same.
The optimal leverage is 1:100.

False. 1:100 is rarely the exact best leverage. If you’re referring to the maximum set amount of leverage experienced traders can benefit from using more max leverage with each UNRELATED pair using appropriate leverage on account while for an inexperienced trader 1:100 leverage is probably too much and they’ll most likely blow their account shortly. If you’re referring to per-trade it’s also false since your leverage amount should be based upon SL distance and other factors that very between trades. 1:100 leverage per trade for every trade would be completely ridiculous.