using leverage

Jan 02, 2020 at 16:47
2,289 Views
51 Replies
Biedrs kopš   994 ieraksti
Jan 02, 2020 at 20:15
New traders need to know this issue before their live trading; because, without following the money management rules the result will be costly for sure!
Biedrs kopš   886 ieraksti
Jan 03, 2020 at 09:39
leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.  
Biedrs kopš   994 ieraksti
Jan 03, 2020 at 18:15
Roberto21 posted:
leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.  

So do you support high leverage? What’s your personal choice?
Biedrs kopš   57 ieraksti
Jan 03, 2020 at 19:50
you must care about your trading size in Lots/Units first! Leverage is secondary.
every beautiful garden has a strong hedge around
Biedrs kopš   920 ieraksti
Jan 04, 2020 at 12:20
Right now I using 1:100 trading leverage in my live account & I made parameter, according to my system’s choice!
Biedrs kopš   785 ieraksti
Jan 09, 2020 at 03:38
its more appropriate to use leverage in demo first of all. this approach will support you to see the real performance how it works. and this approach also supportive to avoid unfortunate risk and losses.
Biedrs kopš   13 ieraksti
Jan 09, 2020 at 09:35
I use 1:30 on my EU broker, but this really makes it harder to faster grow a small account. AU brokers still offer high leverage.
"Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected" - George Soros
Biedrs kopš   886 ieraksti
Jan 18, 2020 at 16:39
In my early stage of trading I used 1:500 trading leverage & always tend to open a new trade but now I am not! Because I see, using high leverage inspires to do over trading.
Biedrs kopš   25 ieraksti
Jan 22, 2020 at 10:53
Jonny87 posted:
leverage is one of the most important tools in forex market. It increases the investment ability. Traders generally choose those brokers which give more leverage than others. So it is a very important to choose a broker which has dynamic and high leverage. I choose tpglobalfx because of their high leverage which is 1:500. They don't change their ratio. It helps me to make more profit.
Agree with you. High leverage, if tackled with care, can really hike up our overall trading experience. This is why I chose Turnkeyforex as my broker since they have very good conditions, plus they provide leverage as high as 1:500, which is just a great help while trading.
Biedrs kopš   10 ieraksti
Jan 22, 2020 at 12:32
High leverage can actually be safer . it allows you to use a smaller trading account and still make good profits. If you lose everything you only lose a small amount. Whereas with low leverage you have to make a big deposit to make any money. If you lose that then you are screwed
Biedrs kopš   11 ieraksti
Feb 27, 2020 at 07:31
Big leverage need only for aggressive trading . If your MM conservative 1:20-50 enough for you .
Biedrs kopš   4 ieraksti
Feb 27, 2020 at 13:55
Imamul posted:
its more appropriate to use leverage in demo first of all. this approach will support you to see the real performance how it works. and this approach also supportive to avoid unfortunate risk and losses.
In this I agree with you

Biedrs kopš   886 ieraksti
Apr 19, 2020 at 14:30
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.
Biedrs kopš   83 ieraksti
Apr 22, 2020 at 07:49
Leverage is really very good help for traders, but you need to use it wisely.
Biedrs kopš   231 ieraksti
Jun 16, 2020 at 00:06
A common mistake beginning forex traders make is to use leverage without taking into account the risk in relation to the amount of money available in their trading account. Leverage can wipe out a trading account very quickly if it is not handled properly.
Biedrs kopš   59 ieraksti
Jun 22, 2020 at 12:09
Although using leverage is important while you trade in forex, it is also important to take care of the risk factors associated with it. Also it is essential to maintain the leverage to be low and make use of trailing stops for reducing the downside and protecting the capital.
Biedrs kopš   112 ieraksti
Jun 25, 2020 at 03:59
Leverage is really a very good help for those who want to invest and earn money.
Biedrs kopš   77 ieraksti
Jun 25, 2020 at 06:20
Using leverage is fine but using high leverage is really a bad idea unless you are a professional trader knowing how risky it is.
Jun 25, 2020 at 08:27
Leverage is a double-edged sword, as real leverage has the potential to enlarge your profits or losses by the same magnitude. The greater the amount of leverage on the capital you apply, the higher the risk that you will assume. Note that this risk is not necessarily related to margin-based leverage although it can influence if a trader is not careful.
Biedrs kopš   373 ieraksti
Jun 30, 2020 at 15:39
Roberto21 posted:
when using leverage money management really a big factor , but the problem is newcomers dont know how to manage money when trading. as a result they become loser most of the time.

Here's my suggestion/example for a good money management:

Account size 1.000€: lot-size 0.01lot (per trade)
10.000€: 0.10lot
100.000€: 1.00lot
1.000.000€: 10.00lot
Maximum account-DD: 10-20% (while trades are running, use an SL if you're not sure when to stop out yourself), maximum used margin per trade: 1% (of your whole account).
As a professional trader you have barely more than 2 or 3 trades opened at once in your account. All people who show you more are scammers or gamblers who don't really trade, or are traders with too much greed and who're not interested in long-term steady profits but only fast money (they probably always blow their accounts after some time).
This goes for all accounts with a maximum account leverage of up to 1:500.
Higher leverages like 1:1000 or 1:2000 I would not recommend. For beginners it's good to start with 1:100.

Btw.: the ESMA has a regulation that you can only trade with a maximum leverage of 1:50 with European brokers. But I guess they'll stop that regulation in 2021 again, because a lot of traders using offshore brokers now (instead of the European ones).

But nevertheless, with lower leverages you could also use higher lot-sizes; it depends on the broker's margin being used per asset (usually you can find it in the details of each asset).
patience is the key
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