If used well, leverage can be very rewarding. However, there are many brokers out there that offer really high leverage options. Just because this high leverage is offered it doesn't mean you need to use it all. The truth is that you need to calculate your own risk and make an assessment of what level of leverage will bring the results you want without risking too much.
True that but more than choosing the right kind of leverage what is important is to understand your risk appetite and what the market demands. Many traders go for higher leverage with zero risk management and trading strategies, hence resulting in blowing up their leveraged trading account, which is the mother of all stress.
Leverage is a game changer. It can give you huge rewards or can deplete your account balance in no time. It’s advisable to always use stop loss and not to take positions without establishing reward to risk possibilities. Set a strategy where you won’t have to take losses greater than 1 or 2%
Leverage is among the things that make forex trading exciting. It's one of the factors that increase your profit, but it can also increase your risk exposure. Using leverage can multiply the effectiveness of a small amount of money, but it also magnifies losses. So be careful and use proper money management.
@Tradextol Yes leverage can cause a huge loss but leverage is also needed at the same time if you have small capital. To open a .01 lot trade, we need 1000$. So without leverage it's difficult to trade.
Leverage can give you great % gains with little money but great % losses which could blow up your account quite quickly if not properly funded. The best way to deal with it is to decide what is the percentage loss you are willing to loose on a trade when at a certain price and make your lot size accordingly in relation to your balance. That way the likeliness for your account to blow up is much lower.
cgasucks posted: Leverage can give you great % gains with little money but great % losses which could blow up your account quite quickly if not properly funded. The best way to deal with it is to decide what is the percentage loss you are willing to loose on a trade when at a certain price and make your lot size accordingly in relation to your balance. That way the likeliness for your account to blow up is much lower.
To make money with leverage, you need proper knowledge.
AVERTISSEMENT SUR LE RISQUE ÉLEVÉ : Le trading de devises comporte un niveau de risque élevé qui peut ne pas convenir à tous les investisseurs.
Leffet de levier crée un risque supplémentaire et une exposition aux pertes. Avant de décider de négocier des devises, examinez attentivement vos objectifs dinvestissement, votre niveau dexpérience et votre tolérance au risque.
Vous pourriez perdre une partie ou la totalité de votre investissement initial. Ninvestissez pas largent que vous ne pouvez pas vous permettre de perdre. Renseignez-vous sur les risques associés au trading de devises et demandez conseil à un conseiller financier ou fiscal indépendant si vous avez des questions.
Toutes les données et informations sont fournies "en létat", uniquement à titre dinformation, et ne sont pas destinées à des fins de trading ou de recommandation.
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