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How true is High leverage = High risk?

Oct 03 at 05:40
450 posts
LyudmilLukanov posted:
High leverage means high risk. Try to avoid that risk if you are a new trader.

I agree with you.

Oct 03 at 08:44
491 posts
This is justified if the trader knows what it is and is confident that he can earn. Otherwise, it is simply an unjustified risk.

Oct 15 at 19:28
17 posts
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.

Oct 15 at 19:32
8 posts
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.

Oct 18 at 10:37
20 posts
leverage is like a double edged sword so it should be used in a wise manner.

Oct 21 at 07:39
59 posts
True to a large extent.

High leverages exposes traders to high risks. On the contrary, you can’t trade well and earn profits without leverage.

Oct 21 at 08:44
491 posts
If the trader has enough experience, this option may be quite justified. The main thing is to correctly assess your capabilities.

Nov 20 at 16:50
5 posts
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.

Nov 21 at 10:01
491 posts
Absolutely, in this case, the risks of trading increase quite noticeably.

Seb King (sebking1986)
Nov 22 at 13:52
152 posts
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.
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