Leverage is useful or not ?

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.

Pretty much the answer on the topic question will be close to ' Yes. Leverage is useful for trading if you know how to use it. '

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.

Leverage can be useful for trading but it also amplify the magnitude of your profit and losses so one needs have a good risk management.

Leverage is useful
but you have to know
what are you doing

It’s true that high leverage can magnify your profits. But at the same time, it also magnifies your losses.

antonyhollinwooe posted:
It’s true that high leverage can magnify your profits. But at the same time, it also magnifies your losses.

Yes. Leverage make this market more interesting. However, many traders lose money rather than gaining due to using high leverage without proper risk management.

Despite of good money managing skill , leverage can be harmful . because the market is too much volatile and there is nothing 100% in here.

Leverage is certainly useful. If a trading plan and discipline can be maintained, you must use leverage. I think 1:50 leverage should be used by every trader.

Even if you are good at money management, leverage can be harmful. Try using it only when you are sure about the market trend.

Leverage is useful. But you need proper knowledge about how to use it on a trading. Without knowledge it will be very dangerous to use.

Chrismorris657 posted:
I know that it is a double-edged sword but it is worth trying. Start small and then, move ahead.

That’s right. Leverage exposes more risk. So, use it carefully. I recommend new trader to use small ratio of leverage.

I'm using only 1:500 leverage, BUT, for every 2000 in balance I'm using 0.01 lot, so the leverage for me is just an additional protection for 'bad weather'

Leverage is a very risky tool and should be used efficiently

Yes. Leverage is very useful if you have enough knowledge how to use it.