Jun 26 2019 at 11:34
90% beginner lose because they do not now how to trade. Nothing to do with leverage
Jun 28 2019 at 15:20
Yes; they start their live trading too early! Don’t have any idea on technical or fundamental trading but try to make money!
Jun 30 2019 at 06:32
Using leverage is part of knowing how to trade. There are many other areas as well though.
Jul 01 2019 at 07:41
TeamNotreDame posted:
Using leverage is part of knowing how to trade. There are many other areas as well though.
Yes it is! Even, it’s very much crucial feature for the retail traders! Whatever; using high trading leverage and depending on it; is a problem!
Jul 02 2019 at 07:18
Start with small leverage and only increase leverage with experience if your consistent and your strategy can handle it. look at my profile for a good example.
Jul 11 2019 at 10:39
Before going in depth about high leverage, it is essential to understand what leverage is. Leverage is a kind of concept that gives you the choice of borrowing a certain amount from your broker to expand the boundary of your investment budget.
Leverage can be high or low, depending upon the trader’s choice. However, leverage is a double-edged sword. If it can multiply your positive returns, then it can also increase your losses to manifold. Taking a very high leverage will cost you to handle a lot of risk too. If you do not screen the markets properly before investing, you can incur heavy losses. A slight price movement in a direction opposite to your expectations, can deplete your entire account.
So try and use leverage to your advantage. Start with little doses and try high volumes of leverage only if you feel you are thorough with the market requirements.
Leverage can be high or low, depending upon the trader’s choice. However, leverage is a double-edged sword. If it can multiply your positive returns, then it can also increase your losses to manifold. Taking a very high leverage will cost you to handle a lot of risk too. If you do not screen the markets properly before investing, you can incur heavy losses. A slight price movement in a direction opposite to your expectations, can deplete your entire account.
So try and use leverage to your advantage. Start with little doses and try high volumes of leverage only if you feel you are thorough with the market requirements.
Jul 12 2019 at 08:03
Leverage implies the borrowed capital from the broker for investing.
It acts as an additional capital for the investor. Different brokers offer different leverages.
Since leverage allows traders to trade larger positions, the chances of profit are also high .
However , higher the leverage the more the risk involved.
This way, higher the risk, more the profit.
So its better to prefer a higher leverage for the investors keeping in mind the amount of risk associated with the same.
The optimal leverage is 1:100.
It acts as an additional capital for the investor. Different brokers offer different leverages.
Since leverage allows traders to trade larger positions, the chances of profit are also high .
However , higher the leverage the more the risk involved.
This way, higher the risk, more the profit.
So its better to prefer a higher leverage for the investors keeping in mind the amount of risk associated with the same.
The optimal leverage is 1:100.
Jul 12 2019 at 08:15
High leverage is like a double edged sword. Professional traders value the high leverage because it allows them to trade large positions i.e. (more contracts or shares etc) with less trading capital. Indeed it is beneficial because higher the leverage,higher the profit but potential losses would also be that much.
Jul 12 2019 at 09:37
Guys,
traders are undercapitalized so they overtrade their accounts.
Now imagine world without leverage to trade 1 lot EURUSD you would need 100,000 EUR account just for margin,
yet the profit would be the same like trading 1 lot EURUSD on 1,000 EUR account.
So without leverage we are risking that 100,000 EUR as everything can happen and is happening on Forex. So ANY funds you deposit to your broker are at rsik.
With leverage we are risking just that 1,000 EUR.
The profit and losses are determined by stop losses and take profits, not the leverage.
In our example if we put 10.0 pips stop losses and take profits we are losing or getting just $100 in both cases.
traders are undercapitalized so they overtrade their accounts.
Now imagine world without leverage to trade 1 lot EURUSD you would need 100,000 EUR account just for margin,
yet the profit would be the same like trading 1 lot EURUSD on 1,000 EUR account.
So without leverage we are risking that 100,000 EUR as everything can happen and is happening on Forex. So ANY funds you deposit to your broker are at rsik.
With leverage we are risking just that 1,000 EUR.
The profit and losses are determined by stop losses and take profits, not the leverage.
In our example if we put 10.0 pips stop losses and take profits we are losing or getting just $100 in both cases.
Jul 12 2019 at 10:27
That is generally true but even stop losses can be blown through in black swan events. The massive move on CHF a few years ago caused a lot of problems for traders and for brokers. Stops were just blown straight through and people couldn't close their positions
