Leverage is among the things

Leverage is among the things that made forex trading very unique because leverage makes one to have chances of making good amount of profits even with small amout of capital,so leverage is good but as well as risky cause the higher the leverage the higher the risk.

Leverage give traders ability to buy contract size with using margin only, common trading activity usually using no leverage, trading in forex market have to buy currencies in lot size, standard for 1 lot is 100,000 so if no leverage used than only big boys with huge money can trade forex

For using high leverage traders need proper risk management strategy to reduce its risk.

Leverage helps provide investment security. If leverage is selected extra, the account may be at risk. So I think 1:50 leverage should be used.

AliaDare posted:
Leverage helps provide investment security. If leverage is selected extra, the account may be at risk. So I think 1:50 leverage should be used.

Yes, I am with you on this one. Leverage should be kept as low as 1:50 since the risk tends to increase if we keep using high and high leverage with each trade.

Mitchelsantner posted:

AliaDare posted:
Leverage helps provide investment security. If leverage is selected extra, the account may be at risk. So I think 1:50 leverage should be used.

Yes, I am with you on this one. Leverage should be kept as low as 1:50 since the risk tends to increase if we keep using high and high leverage with each trade.

Yes, the risk can be high with a high leverage but you can always deploy some risk management techniques to reduce the possibility of high loss.

yes Gleywilleyy,
But one of those risk management techniques that you mention could be a leverage of 1:50 and I think it is one of the most suitable to be able to work with little capital and not risk too much.

Along with giving the traders the chance to make bigger profits, leverage also gives the chance to make bigger losses. Make sure that you know what you are doing before you use it.

Gleywilleyy posted:

Mitchelsantner posted:

AliaDare posted:
Leverage helps provide investment security. If leverage is selected extra, the account may be at risk. So I think 1:50 leverage should be used.

Yes, I am with you on this one. Leverage should be kept as low as 1:50 since the risk tends to increase if we keep using high and high leverage with each trade.

Yes, the risk can be high with a high leverage but you can always deploy some risk management techniques to reduce the possibility of high loss.

But doesn’t that require a lot of expertise?

Mitchelsantner posted:

Gleywilleyy posted:

Mitchelsantner posted:

AliaDare posted:
Leverage helps provide investment security. If leverage is selected extra, the account may be at risk. So I think 1:50 leverage should be used.

Yes, I am with you on this one. Leverage should be kept as low as 1:50 since the risk tends to increase if we keep using high and high leverage with each trade.

Yes, the risk can be high with a high leverage but you can always deploy some risk management techniques to reduce the possibility of high loss.

But doesn’t that require a lot of expertise?

See you can practice how to use stop loss correctly to keep a check on your trade. This will also help you to minimize the losses. There is not a lot that you’ll have to do but with certain trials and practice, you’ll get the hang of it. I also started with a little knowledge with IB and Fxview but I kept practicing and understood how things work in forex.

Making a large amount of profit with a small amount is something everyone aims at. You are right to point this out here.

For retail traders like us, leverage is very important. It gives us capability to trade. Without leverage we would need a lot of money to make a decent profit.

allenaguilar posted:
Making a large amount of profit with a small amount is something everyone aims at. You are right to point this out here.

Focus on growth more rather than earing randomly.

which leverage is more appropriate for trading its depend on your money management, if have good money management you can bring a good result , otherwise not.

Leverage is very important for online trading. Without leverage traders like us won't be able to be trade. To open a .01 lot trade, one needs 1000$. Everyday a currency pair moves in a fraction in decimal. Without leverage good profit is not possible.

LioDaCap posted:
which leverage is more appropriate for trading its depend on your money management, if have good money management you can bring a good result , otherwise not.

However, newbies should use high leverage. They often lose and blow their account because of that.

Leverage is good, but not knowing what to do and how to strategize them is very bad.

RobSchiz posted:

LioDaCap posted:
which leverage is more appropriate for trading its depend on your money management, if have good money management you can bring a good result , otherwise not.

I think every new trader should use 1:50 leverage.

If possible I would use 1:1000+ leverage so that I can deposit less. Just because leverage is large does not mean you need to max it out and trade 10 Lots with every trade

Leverage is a great tool if you know how to use it wisely. The risks are really huge when you use the leverage in your trading, but it gives the opportunity to boast your budget.