Chcete-li používat chat, přihlaste se.
Zpět na Kontakty

High leverage , High risk ?

korson
Sep 11 2018 at 14:58
12 příspěvků
Higher the risk higher the reward and vice versa.
James
jnimc
Sep 13 2018 at 06:32
12 příspěvků
well, it's not always true - most of the big guys trade without risk... cos if in trouble they are bailed out 😄
TeraPips
Sep 14 2018 at 08:10
19 příspěvků
Adribaasmet posted:
TeraPips posted:
It's very important to have good or acceptable risk level, not really wise to get into high risk without good experience.

Yes mate, risk reward ratio is very much important. On the other hand, I see overtrading is one of the most common problem here! By the way, in my trading I never go for more than 2% risk ratio in my per trade.

yes, it was my problem as well, you did good.

korson posted:
Higher the risk higher the reward and vice versa.

Let me interpret it for newbie in trading 'higher the risk, higher the losses'.
korson
Sep 18 2018 at 08:09
12 příspěvků
well said @TeraPips for newbies it is like higher the risk higher the losses, that's why it is very important to learn how to manage the risk.
MikkeyBells
Sep 19 2018 at 20:07
6 příspěvků
I think it is more about what you do with the given leverage rather than how much you are using. Newbies are inexperienced that is why they are told to go with low leverage. Low or high leverage, you should be smart enough to manage your risk.
Adribaasmet
Sep 20 2018 at 09:49
994 příspěvků
jnimc posted:
well, it's not always true - most of the big guys trade without risk... cos if in trouble they are bailed out 😄

Mate, what did you mean by without risk? Because, I know; there is nothing like 100% in Forex, it’s all about probabilities. Thanks in advice.
RichPort
Sep 20 2018 at 10:00
9 příspěvků
That is a lot of the problem here. People assume high leverage is high risk and low leverage is lower risk but it is all about how you set up a trade and manage your account. I dumb trader can wipe out an account on low leverage just as easy as high leverage
James
jnimc
Sep 23 2018 at 06:32
12 příspěvků
Adribaasmet posted:
jnimc posted:
well, it's not always true - most of the big guys trade without risk... cos if in trouble they are bailed out 😄

Mate, what did you mean by without risk? Because, I know; there is nothing like 100% in Forex, it’s all about probabilities. Thanks in advice.

really big - they own markets, set rules etc. Like JP Morgan & silver, Govs & housing... too big to fail etc. Everyone else: risk management, Sharpes are very important... 😄
Imamul
Oct 18 2018 at 06:43
718 příspěvků
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.
yellowman94
Oct 18 2018 at 07:38
41 příspěvků
korson posted:
Higher the risk higher the reward and vice versa.
true. to earn big you need to risk big.
jamesgwyther
Oct 18 2018 at 08:33
289 příspěvků
Imamul posted:
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.


1:400 is plenty
vontogr (togr)
Oct 18 2018 at 13:30
4862 příspěvků
RichPort posted:
That is a lot of the problem here. People assume high leverage is high risk and low leverage is lower risk but it is all about how you set up a trade and manage your account. I dumb trader can wipe out an account on low leverage just as easy as high leverage
Exactly.
Closing losing trade is OK. But when this happens too often due to low leverage you wipe the account as well.
KzakSerik
Oct 19 2018 at 05:38
10 příspěvků
1:400 is plenty but 1:50 is too low. I would have preferred to see a limit of at least 1:100 or 1:200 . Can't really do much with 1:50 unless you have thousands of dollars. Yet again the government is oppressing the little guy
AniLorak
Oct 19 2018 at 05:39
920 příspěvků
togr posted:
RichPort posted:
That is a lot of the problem here. People assume high leverage is high risk and low leverage is lower risk but it is all about how you set up a trade and manage your account. I dumb trader can wipe out an account on low leverage just as easy as high leverage
Exactly.
Closing losing trade is OK. But when this happens too often due to low leverage you wipe the account as well.

No way to ignore this issue! But, I see maximum traders are interested to trade with a high trading leverage so, trading with low trading leverage is not common!
B00sted
Oct 24 2018 at 10:19
2 příspěvků
CoolKimOne posted:
$100 x 1000 = 100,000 . Could you afford to lose that?

Please explain more.

Surely if he has an account with $100 and he lost it all that would be it?

Could he have a negative account?

In that instance would or could the broker take the money even if it's not in his account?
vontogr (togr)
Oct 24 2018 at 14:22
4862 příspěvků
Guys,

you need to separate 2 terms
1. account leverage 1:1 - 1:3000. Even with account of 1:3000 you can trade safely - not overtradings, limiting risk by using SL.
2. used leverage - if you overtrade your positions you will lose regardless the leverage of the account, though on low leverage it will be slower.

Cons - with lower leverage you make less profit, you can't make profit
AniLorak
Oct 29 2018 at 08:11
920 příspěvků
togr posted:
Guys,

you need to separate 2 terms
1. account leverage 1:1 - 1:3000. Even with account of 1:3000 you can trade safely - not overtradings, limiting risk by using SL.
2. used leverage - if you overtrade your positions you will lose regardless the leverage of the account, though on low leverage it will be slower.

Cons - with lower leverage you make less profit, you can't make profit

Exactly, trading with high trading leverage but with a proper money management; is not any worried issue here! If traders follow money management properly, it’s always okay!
pipsKeeper
Nov 08 2018 at 13:21
19 příspěvků
All that was posted before here is really true. I have some question. Why it's more often when brokers suggest beginners to start with a big leverage? The issue is beginner will lose more with the leverage of 1:1000. I suppose that it's better to start with small (1:100 for example).
TeraPips
Nov 09 2018 at 10:52
19 příspěvků
pipsKeeper posted:
All that was posted before here is really true. I have some question. Why it's more often when brokers suggest beginners to start with a big leverage? The issue is beginner will lose more with the leverage of 1:1000. I suppose that it's better to start with small (1:100 for example).

Agree with 1:100 but make sure you have basic knowledge of using it through demo and be aware of your psychology issues which should not interfere trading. You won't want to blow account quickly (with overtrading or revenge trading which is common).
millerwe
Nov 09 2018 at 10:53
14 příspěvků
RichPort posted:
That is a lot of the problem here. People assume high leverage is high risk and low leverage is lower risk but it is all about how you set up a trade and manage your account. I dumb trader can wipe out an account on low leverage just as easy as high leverage
totally agreed. people need to understand how money management works and operates that's the main issue. leverage can result into huge profits if money and risk management are done right.
Pokud chcete komentovat, přihlaste se .