I believe that leverage is a very good option for those who do not have the opportunity to deposit a large amount, but want to have a large deposit for successful trading, which is why Amarkets offer quite good leverage.
For small traders like us, leverage is very important. Without leverage it's not possible to trade with small amount of money. As forex moves very little in terns of percentage. It's the leverage that makes the trading interesting with low capital.
Yes leverage is very important. Without leverage you need a lot of money to trade. For example, to open a 0.05 lots without leverage you need 5000$. But using a lot of leverage and big lot can wipe out your account very quickly. You need to be careful about it.
In leverage is plus and minus. If you use big leverage you can open with big lot, but it mean you will receive big profit or big lose. Also, all who use big leverage account will include broker plugins who close orders not correctly, if you trade with EA. Use big leverage you must put a 'lot', like you was use it without leverage, than you will get profit. Always put 'lot' 50% lower than you use always because of plugins, slippage, ping, and spread. I use leverage on few account's betwean 500 and 1000.
Just please think, why EU have made for all brokers leverage 1:50 it is because if you use bigger, in first you can get good profit, you are happy, and after that it going depend of broker good profit, and going week or month you just simply blow your account, because of margin call (because you use big lot and not keep on money management)
EbonyJones posted: IF you are new in this market, using low leverage will be good for you. Because high leverage means taking high risks.
Correct. Beginners shouldn't make much use of leverage otherwise they'll end up with more risk and losses might also come their way. So better keep it restricted to 30x or 40x max until they dont gain experience.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
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