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High leverage = High risk?
Russel Gutierrez (russellgutierrez)
Member Since Jun 03, 2020
56 posts
Feb 18, 2021 at 04:16
Member Since Jun 03, 2020
56 posts
josejames posted:Yup there is an incredible difference between rash decisions and calculated risks. I started with micro lots in trading through Fxview, with only 100 dollars through the use of leverages I was able to trade many positions. Then I moved to standard lots through XTB which was further beneficial for me.
Garey! It's okay to not take unnecessary risks but still I would say take calculated risks. This would be much beneficial for you.
Member Since Jul 17, 2020
42 posts
Lee Baxter (bax699)
Member Since Oct 23, 2018
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Member Since Oct 01, 2020
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Member Since Jun 29, 2020
38 posts
Feb 23, 2021 at 10:43
Member Since Jun 29, 2020
38 posts
I find leverage as a good way of enhancing your profits. But we cannot overlook the fact that it also amplifies your losses. Use leverage only when you are sure about a market move. If it is about testing leverage, you can go up to 1:10 because beyond that would be quite a high risk.
yana hansen (78678676)
Member Since Oct 16, 2020
137 posts
Vanza Dorbey (vanzadorbey)
Member Since Jan 17, 2021
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Member Since Oct 29, 2020
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Member Since Oct 29, 2020
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Member Since Oct 05, 2020
65 posts
Feb 24, 2021 at 09:22
Member Since Oct 05, 2020
65 posts
Frankly, I agree with most of the suggestions here. We all know that the chances of making profits in the forex market are equal to that of making losses. Although I have chosen brokers that offer high leverage - fxview, exness, I kind of avoid it. I am saving it for the times when I will be more sure about my moves.
Member Since Oct 09, 2020
28 posts
Feb 25, 2021 at 04:56
Member Since Oct 09, 2020
28 posts
As long as you know what you are doing, leverage is a good thing. But if it goes against you, it can quickly deplete your account. Use leverage only when you are ready for it. Also, never forget to use reasonable stops to avoid a higher loss of capital.
Feb 25, 2021 at 13:56
Member Since Jun 08, 2020
44 posts
High leverage is considered risky because when a trader loses in a trade with high leverage, the loss also results in a large amount, whereas if the trader can convert it into a successful trade, the profit earned is more than the invested amount.
Member Since Jul 23, 2020
869 posts
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Feb 27, 2021 at 14:25
Member Since Jul 20, 2019
372 posts
unsightlydray posted:78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Actually 'leverage' just means that you'll get a 'credit' from a bank or liquidity provider of the broker. A max. account leverage of 1:500 means that you can trade with a maximum of 500k per trade (!) while you'll only throw in 1k of your own money. But if you'll lose 2k in that trade, where does the other 1k come from then? Right, it comes from your deposits (and that's how can get into debt). Most professional brokers have a negative balance stop out. But the higher your leverage the higher the chance you'll get to this stop out.
patience is the key

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