Leverage is an important financial tool which an investor should consider when choosing a broker, it allows an investor to grow his market exposure to a level that exceeds the initial investments. If you want to make profit very rapidly by using high leverage first of all you have to make sure real risk managing plan , otherwise you can fall a great loss despite of sufficient trading balance.
Capitalinvestfx posted:BaldoN posted:
Leverage is a knife with two blades:
* if you know what you are doing - it will help you
* if you have no idea - your account is ... dead
absolutly good point need to be vigillent with your mm
I agree 100% make sure your money management takes 100:1 in account. I've been trading over 7 years and started with 100% and still use it
Gp
All systems work sometime, but no system works all the time.
for newcomers suggest to trade with small leverage, because leverage is an important financial tool which always contains risks. So, as a newcomer first of you have to acquire proper risk management policy by trading in demo account in a long time, this approach help you to see the performance how works high leverage.
I have seen many traders think only high leverage can bring profit very rapidly . but practically despite of high leverage that’s not possible at all to make profit very rapidly by using high leverage , if you don’t have a proper risk management plan . so, before trading we have to ensure that with surely.
Feb 26 2018 at 12:15
High leverage is not bad.
It is not good either.
The outcome depends how you will use it.
It is not good either.
The outcome depends how you will use it.
At the present I am using 1:10 to 1:100 . more leverage become a killer practically. My broker offering high leverage but wisdom is in using appropriate leverage that is manageable for me easily. If I use much leverage it can low my account any time.
Even 1:100 is high. If you make a $1000 deposit then it is possible that you could owe $100,000!
Mar 12 2018 at 14:31
Gold101 posted:
Even 1:100 is high. If you make a $1000 deposit then it is possible that you could owe $100,000!
But still you risk just 1,000 and you can trade 1 lot trades.
With low leverage you will have to deposit and risk 10,000 or more to get the same trades.
I have seen in order to me, Many traders consider leverage as a borrowed of money. But in order to me , it is not a borrowed money but you use your money (capital) as leverage. Meaning you are betting your own money and increase or decrease the stake of risk by increasing or decreasing your leverage. for example if you use 1:100 leverage that mean if you going to incur loses your loses will be 100 times that your actual loses or if you make profit your profit will be 100 times more than the actual profit.
There is a common thinking that the higher the leverage is, the higher the profit would be. As other members have said before me , leverage can lead to losses as quickly as to profits. I think the leverage you choose depends also on the instruments you prefer to trade. For example some instruments are more 'Expensive' ...
Accept the loss as experience
