If you want to open an account, you should first of all think about your deposit. Starting with a few hundreds or even thousand dollars will require you a leverage, which is in fact a hidden loan offered by the broker agency. That's how important leverage is. However, the leverage can also bring to losses much faster than you may think. Check how leverage works (https://www.itrader.com/en/article/what-is-leverage)
High leverage can bring profit instantly if you are able to make proper trading planning with great risk management policy , otherwise you can fall a huge loss by taking high leverage , in this market place by and large traders in particularly the newcomers fall a great loss by taking high leverage due to non-sense planning and zero risk management approach. So, before trading with high leverage we have to know how to manage risk.
Mohammadi posted: By using leverage you will be win or not , it depends on your trading plan . With real trading plan including exact risk managing plan it is obviously possible to make profit very quickly by using high leverage despite of having small balance. on the other hand , in spite of sufficient trading balance that’s not possible to ensure profit by leverage , if you don’t know how to manage risk.
Of course it is useful, it is very important, although it is a double-edged sword and can be beneficial or with great losses for the investor.
the leverage always works as a killer. Because the traders we have always fall a great loss by using leverage especially when high ration. But sometimes it brings profit very rapidly when there is real trading plan with great risk management approach. Actually forex market is too much risky and volatile. Risk is everywhere and from all trading elements leverage always contains more risk. so before trading with leverage we have to make sure how to manage risk in Fx.
Beginners practically try to earn profit by using leverage. How much money you can earn by using leverage, it depends on proper trading planning. Now I am more comfortable with 1:100 leverage. Sometimes I use up to leverage 1:500 when I can calculate the market with surely.
If you have proper knowledge about the use of leverage, you can use it. It will be beneficial for you. But without any knowledge, it will be risky to use leverage in your trading. you can face a great loss.
I find it useful because leverage increases the trading margin. When you trade with the capital higher than you deposit it makes profit accordingly, even a small fluctuation in price could increase profit.