Low leverage is dangerous, why?

Jun 02, 2016 at 13:39
3,798 Angesehen
64 Replies
Mitglied seit Feb 22, 2011   4862 Posts
Aug 21, 2018 at 13:35
Nope.
Leverage does not control the loss on your account.
It simply determines margin needed to open and maintain position.
Mitglied seit Oct 21, 2016   51 Posts
Aug 22, 2018 at 06:38
togr posted:
Nope.
Leverage does not control the loss on your account.
It simply determines margin needed to open and maintain position.
Exactly!
Risk management applies the same way to stocks trading (no leverage) and CFD trading (with leverage) regardless.
It's all up to the trader to handle the risk.
Trade with determination!
Mitglied seit Oct 09, 2017   23 Posts
Sep 02, 2018 at 06:31
Bohdan73 posted:
togr posted:
Nope.
Leverage does not control the loss on your account.
It simply determines margin needed to open and maintain position.
Exactly!
Risk management applies the same way to stocks trading (no leverage) and CFD trading (with leverage) regardless.
It's all up to the trader to handle the risk.
Amen!
Mitglied seit Jan 03, 2018   162 Posts
Sep 05, 2018 at 14:41
leverage is how much the bank is ready to loan you money in order for you to trade larger lots size,thus (POTENTIAL ) to earn more profit,IF your trading system is sound
nick123427@
Mitglied seit Oct 11, 2013   775 Posts
Sep 05, 2018 at 16:44
Very good advice and opinions from all of you. I may act that leverage is controlled by the size of your position in relation to your account size. On the other hand, low or high leverage really doesnt make a difference if you dont have a consistent trading system.
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