High leverage = High risk?
Biedrs kopš
53 ieraksti
Feb 08, 2021 at 08:04
forextrader777 posted:Yes, I am taking my sweet time to be thorough with trading concepts.
High leverage attracts new traders but few of them know the actual working of leverage. I would recommend that before pushing yourself into the trades that need margin, try to understand the concept clearly, otherwise it can wipe off your account balance.
Biedrs kopš
42 ieraksti
Feb 08, 2021 at 12:35
Steve, even forextime offers it. So does fp markets. These are my ex brokers.
Biedrs kopš
11 ieraksti
Feb 15, 2021 at 10:34
Everyone should use fixed stops, even if it is a safety stop loss wider than normal. All it takes is some political event to shake the markets just after you entered to cause massive price spike. Without a safety SL you could make massive losses
Biedrs kopš
29 ieraksti
Feb 16, 2021 at 07:57
It seems to me that the risk does not depend on the size of the leverage, on our ability and willingness to take risks.
Biedrs kopš
28 ieraksti
Feb 16, 2021 at 10:04
@Eric ideally, you shouldn’t risk more than 1 or 2% of your trade. It also depends upon the trading style of a person and how much they’re willing to risk. For example, I trade with IB and Fxview and my risk management is such that I don’t go beyond risking 2% of it. This helps me maintain a balance and minimises potential losses too.
Biedrs kopš
16 ieraksti
Feb 17, 2021 at 12:19
Garey! It's okay to not take unnecessary risks but still I would say take calculated risks. This would be much beneficial for you.
Biedrs kopš
12 ieraksti
Feb 18, 2021 at 08:01
It is a great advice Russel, that in the beginning try to trade micro lots, and use innovative strategies for the same.
Biedrs kopš
110 ieraksti
Feb 22, 2021 at 09:45
Yes
High leverage = High risk = High chance of wiping out your account/funds
High leverage = High risk = High chance of wiping out your account/funds
Biedrs kopš
29 ieraksti
Feb 22, 2021 at 11:20
Only if you dont know how to use it. If you get to a good stage of trading then sometimes you can use it to your advantage
Biedrs kopš
37 ieraksti
Feb 23, 2021 at 04:54
High leverage doesn’t always mean risk. It is all about knowing what you are doing. If you can manage using high leverage there is no harm in using it.
Biedrs kopš
26 ieraksti
Feb 23, 2021 at 09:54
For me, 1:100 is a good leverage to use. There is no point in risking a big amount that if lost, can pose a heavy burden on your finances. Give it a thought before you take the risk of using high leverage.
Biedrs kopš
137 ieraksti
Feb 23, 2021 at 10:55
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Biedrs kopš
31 ieraksti
Feb 23, 2021 at 15:19
78678676 posted:Thats is very correct.
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Biedrs kopš
53 ieraksti
Feb 24, 2021 at 08:14
robindude posted:And is there any way of earning decently without using leverage? I doubt it!
Yes
High leverage = High risk = High chance of wiping out your account/funds
Biedrs kopš
53 ieraksti
Feb 24, 2021 at 08:15
78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Biedrs kopš
44 ieraksti
Feb 25, 2021 at 13:56
High leverage is considered risky because when a trader loses in a trade with high leverage, the loss also results in a large amount, whereas if the trader can convert it into a successful trade, the profit earned is more than the invested amount.
Biedrs kopš
869 ieraksti
Feb 25, 2021 at 17:28
New traders should not use high leverage in trading. Traders need to control and minimize the risk for using high leverage.
Biedrs kopš
37 ieraksti
Feb 27, 2021 at 11:33
See, no doubt that there is a high level of risk with high leverage but the only thing matters is how much knowledge and experience you have for taking such risks.
Biedrs kopš
37 ieraksti
Feb 27, 2021 at 13:25
Using higher leverage in a live trade is risky to traders with less or no experience in trading because if trader losses with higher leverage, it is possible for those traders to blow up their accounts.
Biedrs kopš
373 ieraksti
Feb 27, 2021 at 14:25
unsightlydray posted:78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Actually 'leverage' just means that you'll get a 'credit' from a bank or liquidity provider of the broker. A max. account leverage of 1:500 means that you can trade with a maximum of 500k per trade (!) while you'll only throw in 1k of your own money. But if you'll lose 2k in that trade, where does the other 1k come from then? Right, it comes from your deposits (and that's how can get into debt). Most professional brokers have a negative balance stop out. But the higher your leverage the higher the chance you'll get to this stop out.
patience is the key
