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using leverage

Jun 16 2020 at 00:06
231 posts
A common mistake beginning forex traders make is to use leverage without taking into account the risk in relation to the amount of money available in their trading account. Leverage can wipe out a trading account very quickly if it is not handled properly.
Jun 22 2020 at 12:09
59 posts
Although using leverage is important while you trade in forex, it is also important to take care of the risk factors associated with it. Also it is essential to maintain the leverage to be low and make use of trailing stops for reducing the downside and protecting the capital.
Jun 24 2020 at 11:21
30 posts
I've only started trading for 8 months and i feel Leverage doesn't matter much, only if your planning to go big, using minimum leverages are better off.

Some brokers do give some pretty high leverage but could be scammers or just have some kind of commission charges that are high as well.
Jun 25 2020 at 03:59
112 posts
Leverage is really a very good help for those who want to invest and earn money.
Jun 25 2020 at 06:20
73 posts
Using leverage is fine but using high leverage is really a bad idea unless you are a professional trader knowing how risky it is.
Jun 25 2020 at 08:27
147 posts
Leverage is a double-edged sword, as real leverage has the potential to enlarge your profits or losses by the same magnitude. The greater the amount of leverage on the capital you apply, the higher the risk that you will assume. Note that this risk is not necessarily related to margin-based leverage although it can influence if a trader is not careful.
Jun 30 2020 at 15:39
370 posts
Roberto21 posted:
when using leverage money management really a big factor , but the problem is newcomers dont know how to manage money when trading. as a result they become loser most of the time.

Here's my suggestion/example for a good money management:

Account size 1.000€: lot-size 0.01lot (per trade)
10.000€: 0.10lot
100.000€: 1.00lot
1.000.000€: 10.00lot
Maximum account-DD: 10-20% (while trades are running, use an SL if you're not sure when to stop out yourself), maximum used margin per trade: 1% (of your whole account).
As a professional trader you have barely more than 2 or 3 trades opened at once in your account. All people who show you more are scammers or gamblers who don't really trade, or are traders with too much greed and who're not interested in long-term steady profits but only fast money (they probably always blow their accounts after some time).
This goes for all accounts with a maximum account leverage of up to 1:500.
Higher leverages like 1:1000 or 1:2000 I would not recommend. For beginners it's good to start with 1:100.

Btw.: the ESMA has a regulation that you can only trade with a maximum leverage of 1:50 with European brokers. But I guess they'll stop that regulation in 2021 again, because a lot of traders using offshore brokers now (instead of the European ones).

But nevertheless, with lower leverages you could also use higher lot-sizes; it depends on the broker's margin being used per asset (usually you can find it in the details of each asset).
patience is the key
Jul 07 2020 at 06:18
128 posts
The size of leverage is usually set when opening a trading account, it can be very different - 1: 5, 1:20, 1: 100 and even 1: 1000
Jul 19 2020 at 07:30
364 posts
In Fx trading , leverage is useful for trader , especially if trader start with small balance hence with leverage it will giving opportunity to making transaction on Fx market , now some broker offer high leverage until 1:1000 but so far I am only use leverage 1:400 as maximum.
Jul 20 2020 at 18:35
718 posts
most of the traders think only high leverage is the foremost reason to lose rapidly , if you lose by using leverage that means you can manage the money.
Jul 23 2020 at 11:22
283 posts
i am very careful for using leverage , because i have seen so may traders who lost their balance due to using over leverage , i always scared about using leverage.
Jul 23 2020 at 12:22
740 posts
I had a problem with leverage ratio. I used high leverage without real trading plan and became loser. I request, please before live account, trade in a demo account with leverage. Minimum you would see the performance how leverage works.
Jul 30 2020 at 00:43
231 posts
I think we should not use high leverage in the begining of our trading period and should use low leverage, you can make some good and small profit it and can continue with high leverage when you get some good experience.
Jul 31 2020 at 09:53
41 posts
Being a newbie, always go for low leverage like 100x or 50x. It will help you in understanding the concept of the leverage that how it works, what role does it play in a trade. Using leverage is a complex decision always make it with the utmost care and analysis.
Aug 06 2020 at 05:05
759 posts
Leverage is a double-edged sword that can help increase profits, but can also accelerate losses. When you use leverage to trade in the forex market, you need to fully understand the advantage and disadvantage of leverage.
Aug 31 2020 at 11:50
341 posts
Using a high leverage can be very dangerous for new traders. If you are expert enough to make your decisions almost properly you can take risk of taking high leverage.
Sep 01 2020 at 09:52
283 posts
actually so many important financial tool in Forex trading , from all leverage is most important which an investor should consider when choosing a broker , it completely
relates with risk management , if you know how to manage risk , i think there is very few chance to bring good amount of losses by using leverage , otherwise really it could be dangerous.
PCube Singapore
Sep 01 2020 at 12:54
17 posts
Leverage is a two edged sword, win big or lose big.

What matters is your risk management. Despite given 1:500, with proper discipline, you wouldn't use 90% of it
Sep 02 2020 at 08:11
32 posts
Using higher leverage can i gain capital quicker or is it just risky ?
Sep 07 2020 at 19:14
318 posts
Leverage is a very important tool for trading in forex. It helps a trader to earn more money with their little investment. But without proper knowledge, using high leverage can be very risky. So, think before you using high leverage.
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