How true is High leverage = High risk?

Nov 12, 2020 at 07:22
3,777 Views
61 Replies
Member Since Nov 02, 2020   57 posts
Feb 10, 2021 at 15:05
It seems to me that the risks associated with leverage does not depend on its size, it depends on how willing you are to work with it.
Member Since Jan 13, 2021   52 posts
Feb 10, 2021 at 20:42
From my experience most brokers will shut you down if Marvin gets to low and take that issue away from you.
Member Since Dec 24, 2020   12 posts
Feb 24, 2021 at 05:23
From what I have heard and experienced, it is somewhat true. A high leverage can increase the risk per trade but it also opens up doors for any potential return.
Member Since Nov 03, 2020   65 posts
Mar 11, 2021 at 20:33
The risk does not depend on the size of the leverage, it depends on your skill.
Member Since Jul 23, 2020   869 posts
Jul 10, 2021 at 01:44
High leverage means high risk. Try to avoid that risk if you are a new trader.

Member Since Nov 23, 2020   46 posts
Jul 10, 2021 at 04:53
I work with leverage, the size of which is 1: 1000, and I can say that I do not consider this to be the maximum risk and some kind of thoughtless step, this, on the contrary, is exactly what makes it possible to really earn on such scheme.
Member Since Jul 23, 2020   759 posts
Sep 05, 2021 at 13:35
High leverage always contains high risk. However, it can be reduced.
Member Since Jul 19, 2020   751 posts
Sep 06, 2021 at 08:07
Yes high leverage means high risk. That's why every trader should have a risk management plan. Otherwise he won't be able to stay in the market.
Member Since Mar 28, 2021   617 posts
Sep 27, 2021 at 12:34
Of course high leverage means high risk. But even with high leverage you can manage your risk by following strict risk management system.
Member Since May 24, 2020   112 posts
Sep 28, 2021 at 11:20
That's right, you need to look not at where there are risks, but you need to learn how to manage them, so you can work with whatever you want.
Member Since Jun 07, 2021   72 posts
Sep 29, 2021 at 07:22
In forex, traders often use high leverage because it allows them to control a lot of money with relatively little capital. But high leverage also carries a risk – it magnifies losses as well as gains. Always use proper risk management to minimize these effects.
Member Since Dec 09, 2013   139 posts
Sep 29, 2021 at 09:14
Leverage is a double edged sword. Traders often get carried away with high leverage. They end up taking more risk and blow their account at the end. It must be chosen with high care. At the beginning, I would recommend that you choose 1:50 to 1:100 leverage. I am wishing you all the very best.
Member Since Mar 17, 2021   536 posts
Oct 03, 2021 at 05:40
LyudmilLukanov posted:
High leverage means high risk. Try to avoid that risk if you are a new trader.

I agree with you.
Member Since Dec 28, 2019   18 posts
Oct 15, 2021 at 19:28
It's true without any 'but'. If there is a high leverage, then there is a very high risk, because if you will make an occasional move, then you cna lose everything you had. In my opinion, leveraging is good actually, but in the right hands. Undoubtedly that you can lose everything, however we should remember that you have an opportunity to earn much more money than you would earn without leverage. I believe this thing drives traders crazy. That's why they start uncosciously make weird moves, open weird deals and lose their money. Remember that everything in trading is required a right and proper approach.
Member Since Oct 15, 2021   8 posts
Oct 15, 2021 at 19:32
Leverage, which is the use of borrowed money to invest, is very common in forex trading. By borrowing money from a broker, investors can trade larger positions in a currency. However, leverage is a double-edged sword, meaning it can also magnify losses. Choose a best Forex Expert.
Member Since Jun 21, 2021   24 posts
Oct 18, 2021 at 10:37
leverage is like a double edged sword so it should be used in a wise manner.
Member Since Nov 14, 2020   7 posts
Nov 20, 2021 at 16:50
It's true on hundred percents actually. The higher leverage you choose the more risks you have to take on yourself. Be careful with leverages because they can easily devastate and blow your account and you will be left without money. It's a good instrument, but it's pretty dicey.
Member Since Apr 09, 2019   538 posts
Nov 22, 2021 at 13:52
It depends on the person using the leverage. If you are being sensible and using correct lot sizes then you will just be using less margin for the same trade. But if you are then why do you need the leverage. Unfortunately higher leverage tends to be utlisied by those who over trade and use lot sizes far bigger than their account can handle and without a sensible strategy in place.
If you can't spot the liquidity then you are the liquidity.
Member Since Jun 12, 2021   132 posts
Nov 24, 2021 at 11:24
leverage really a high risk ratio chapter in Forex trading , if you haven't most powerful analyzing money management then it could be dangerous.
Member Since Mar 17, 2021   536 posts
Nov 26, 2021 at 18:14
skihav posted:
In my opinion, this is a good opportunity to earn money, but with the risk it is worth being careful.
I agree with you. But you need proper knowledge.
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