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.

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.

Using leverage is fine but using high leverage is really a bad idea unless you are a professional trader knowing how risky it is.

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).

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.