Leverage is useful or not ?

necolesilvers posted:
If used properly, Leverage can be really useful but one needs to know that leverage has a potential to magnify your profits as well as losses.

Yes. I agree with you.

leverage is called a double-edged sword in the forex market because of the risks associated with it. As much as leverage can be used to increase your profits in the forex trading market, it can increase the risks too.
Because of this, it is something that traders should use with a lot of care.

according to me newcomers should not trade with using leverage at the first stage of trading , because it contains huge risk than others financial tool.  

Not sure if anyone has mentioned it yet but leverage is often referred to as a “double edged sword” for good reason.

Imagine trading forex without any leverage..... haha.

Yes... using leverage is very important in trading fx... trading fx is all about few hundred pips- thousand pips... there is no way to invest 100K USD to aim for these few profit

Leverage is a two-edged sword: On one hand, it increases your profit. On the other hand, it also increases your risk of losing a lot of money. Traders should use leverage only when they have a good money management strategy and follow strict rules.

Leverage is only for those who know how how to play with it. Just like @Quercine said, it's a double-edged sword, so better use it wisely.

It is useful for those who use it correctly. Leverage is a tool that allows you to get a better deal for your profit. However, it is also a dangerous tool because when you use this tool incorrectly, you can easily lose money much more than what you have deposited in the account.

We all utilise leverage to some extent.
As others have said be careful it can really burn you if your not careful .

Some beginners are not able to understand the concept of leverage initially. But as they start to trade, they come to know that leverage can be very beneficial because it lets them trade bigger positions without owning a large amount themselves.

frandunn posted:
Some beginners are not able to understand the concept of leverage initially. But as they start to trade, they come to know that leverage can be very beneficial because it lets them trade bigger positions without owning a large amount themselves.

Exactly, as with many aspects of trading, a lack of understanding is half the problem.

high leverage means high risk , its not true exactly, if there is any risk it is complete with nonsense planning or zero risk management, nothing without it.

Tradelist45 posted:
high leverage means high risk , its not true exactly, if there is any risk it is complete with nonsense planning or zero risk management, nothing without it.

Exactly! It is a tool to be utilised. Poor use = poor results.

Leverage is of great importance in forex trading as it allows a trader to trade large positions for a small deposited amount. But it can blow the whole account if leverage is not used carefully. A trader should not prefer trading leverage if he is not sure about the trade.

Quite a difficult question, the role leverage plays in your trading plan is totally dependent on the trader who has the complete power to turn it into a boon or bane. Leverage is an important tool as it enables the traders to borrow capital for gaining exposure and controlling big trades that further leads to maximising profits. Always remember that it is important for traders to strategize, minimise and effectively manage risks associated with leverage.

It does allow us to participate in the market without leverage you couldn't hope to open up a position on a standard retail account

In forex trading, choosing leverage to become consideration actually, because high leverage is also associated with higher risk, because it alow trader open trades to use small margin requirement in high position size, it endangers account trading and narrowed margin level quickly when the trend against the position, margin call will be triggered quickly when trader using high lot size due use high leverage

Useful as long as it is used wisely.