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How true is High leverage = High risk?

Lorencecolling
Nov 25 2020 at 11:57
49 件の投稿
I’m a stickler when it comes to using pnl. Never have, never will trade without properly scrutinizing the potential losses and profits in every trade, no matter worth a lot of money or small.

Marksteve
Nov 25 2020 at 12:40
36 件の投稿
What is the best way of knowing if a trade is too risky?

LeviSievwright5
Nov 26 2020 at 05:18
298 件の投稿
High leverage trading can put investments at risk. Every trader should use the lowest leverage. This protects the trading investment.

Markwoods
Nov 26 2020 at 09:19
26 件の投稿
How long have you been trading for? I always follow the trend. And follow the ATR method of stop loss.

davis3d
Nov 26 2020 at 10:04
1 件の投稿
Leverage has almost nothing to do with risk, if inspected on its own.
Lot size, leverage, Stop Loss and what % the stop loss is at compared to your equity is what you'd use to calculate risk.
You should probably take some classes before trading if you are asking these types of questions

Darrensmith
Nov 26 2020 at 10:52
37 件の投稿
Isn’t trailing stop loss a better use of sl? Also of late I have been relying a lot on the economic calendar. Really helpful in knowing if a particular time is good to trade.

marco_mmbiz
Nov 26 2020 at 13:10
362 件の投稿
posted:
Are high and low leverage two sides of the same coin? I have started fresh in forex and not able to make a right judgment for a good leverage.

Not sure how correct it is to say there are high risks with high leverage.

Recommendations needed from experience holders.


No one should ever use a leverage above 1:500. This should be the overall maximum for everyone. Everything above is like you'd go to the bank and they'd give you a credit that is more than 500 times higher than your income, knowing you'd never ever get the chance to pay a possible loss back anytime soon (like if your monthly income is like 2k and they'd give your more than 1 million; that's not gonna happen). The most preferable leverages are between 1:10 and 1:500, but that's just my own opinion. Personally I prefer 1:100, but actually I trade with 1:500 on all my used brokers (because they won't give me 1:100), except my Cysec-/ESMA-regulated one where I get a max. of 1:30 which is still okay.

Lorencecolling
Nov 26 2020 at 13:24
49 件の投稿
another sharp point is your size of contract. It can be easily increased or lowered. Your trade location might be an influential factor with margin requirements and hence the max leverage. Most intermediate traders (include me too!) prefer a lower bet size and for that purpose, Metatrader 4 comes into picture as it allows that.
When I was into the process of transitioning to Fxview, I cancelled out a few shady brokers and preferred to go with regulated ones that also allowed support for MT4 and other trading platforms. Fxpro was my closest choice to catch up with MT5 and cTrader.
I just narrowed down to ecn as with my options shortlisted, Fxview was providing it. I prefer ecns for their adaptability to spreads when markets are highly volatile. I like to be pinned with low spreads afterall.

Markwoods
Nov 27 2020 at 11:33
26 件の投稿
True that, an ecn user here. Wouldn’t settle for anything else. I find so much comfort in knowing that my funds are kept segregated from other investors capital. Even if it’s less, I always want it that way.

Marksteve
Nov 27 2020 at 13:16
36 件の投稿
I haven’t thought much about this aspect yet.

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