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High leverage = High risk?
Uczestnik z Oct 29, 2020
53 postów
Feb 08, 2021 at 08:04
Uczestnik z Oct 29, 2020
53 postów
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.
Uczestnik z Jul 17, 2020
42 postów
Uczestnik z Sep 18, 2018
11 postów
Feb 15, 2021 at 10:34
Uczestnik z Sep 18, 2018
11 postów
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
Uczestnik z Nov 24, 2020
28 postów
Feb 16, 2021 at 10:04
Uczestnik z Nov 24, 2020
28 postów
@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.
Uczestnik z Dec 11, 2020
110 postów
Feb 22, 2021 at 09:45
Uczestnik z Dec 11, 2020
110 postów
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
Uczestnik z Oct 01, 2020
37 postów
Uczestnik z Oct 16, 2020
137 postów
Feb 23, 2021 at 10:55
Uczestnik z Oct 16, 2020
137 postów
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Uczestnik z Jan 17, 2021
31 postów
Uczestnik z Oct 29, 2020
53 postów
Uczestnik z Oct 29, 2020
53 postów
Feb 25, 2021 at 13:56
Uczestnik z Jun 08, 2020
44 postów
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.
Uczestnik z Jul 23, 2020
869 postów
Feb 25, 2021 at 17:28
Uczestnik z Jul 23, 2020
869 postów
New traders should not use high leverage in trading. Traders need to control and minimize the risk for using high leverage.
Uczestnik z Jul 20, 2019
373 postów
Feb 27, 2021 at 14:25
Uczestnik z Jul 20, 2019
373 postów
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
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