How true is High leverage = High risk?

Nov 12, 2020 at 07:22
Przeglądane 3,389
61 Replies
Uczestnik z Oct 01, 2020   37 postów
Nov 26, 2020 at 10:52
Isn’t trailing stop loss a better use of sl? Also of late I have been relying a lot on the economic calendar. Really helpful in knowing if a particular time is good to trade.
Uczestnik z Jul 20, 2019   373 postów
Nov 26, 2020 at 13:10
posted:
Are high and low leverage two sides of the same coin? I have started fresh in forex and not able to make a right judgment for a good leverage.

Not sure how correct it is to say there are high risks with high leverage.

Recommendations needed from experience holders.

No one should ever use a leverage above 1:500. This should be the overall maximum for everyone. Everything above is like you'd go to the bank and they'd give you a credit that is more than 500 times higher than your income, knowing you'd never ever get the chance to pay a possible loss back anytime soon (like if your monthly income is like 2k and they'd give your more than 1 million; that's not gonna happen). The most preferable leverages are between 1:10 and 1:500, but that's just my own opinion. Personally I prefer 1:100, but actually I trade with 1:500 on all my used brokers (because they won't give me 1:100), except my Cysec-/ESMA-regulated one where I get a max. of 1:30 which is still okay.
patience is the key
Uczestnik z Oct 01, 2020   49 postów
Nov 26, 2020 at 13:24
another sharp point is your size of contract. It can be easily increased or lowered. Your trade location might be an influential factor with margin requirements and hence the max leverage. Most intermediate traders (include me too!) prefer a lower bet size and for that purpose, Metatrader 4 comes into picture as it allows that.
When I was into the process of transitioning to Fxview, I cancelled out a few shady brokers and preferred to go with regulated ones that also allowed support for MT4 and other trading platforms. Fxpro was my closest choice to catch up with MT5 and cTrader.
I just narrowed down to ecn as with my options shortlisted, Fxview was providing it. I prefer ecns for their adaptability to spreads when markets are highly volatile. I like to be pinned with low spreads afterall.
Uczestnik z Sep 30, 2020   26 postów
Nov 27, 2020 at 11:33
True that, an ecn user here. Wouldn’t settle for anything else. I find so much comfort in knowing that my funds are kept segregated from other investors capital. Even if it’s less, I always want it that way.
Uczestnik z Apr 15, 2020   83 postów
Nov 28, 2020 at 13:05
The ability to manage capital and certain skills can make the risks much less, and if you still use good leverage, like the broker Amarkets 1: 1000, then, in principle, there are no problems.
Uczestnik z Oct 01, 2020   37 postów
Dec 01, 2020 at 09:40
I spent half a year just trying and deliberating different brokers and kinds of accounts. I think every trader should.
forex_trader_1996705
Uczestnik z Nov 12, 2020   18 postów
Dec 01, 2020 at 09:57
Use low leverage for better risk management
Uczestnik z Sep 30, 2020   26 postów
Dec 01, 2020 at 10:31
Dorigda posted:
The ability to manage capital and certain skills can make the risks much less, and if you still use good leverage, like the broker Amarkets 1: 1000, then, in principle, there are no problems.
It is ultimately all about risk management. Because I think not using leverage is just playing it too safe, and that can certainly not lead to big gains.
Uczestnik z Sep 30, 2020   26 postów
Dec 01, 2020 at 13:06
No denying the fact that profits ultimately depend on the skills of a trader. A broker can only help by offering certain leverage. Higher the better!
Uczestnik z Oct 01, 2020   37 postów
Dec 02, 2020 at 03:55
High leverage is only safe in the hands of very experienced traders. It’s not meant for all.
Uczestnik z Jul 09, 2020   39 postów
Dec 02, 2020 at 08:07
As I traded in the past, besides the leverage concern, I do assume that some of most underrated tools come in handy to arbitrate your ongoing trades.

Being a FXTM user, I mostly spent my time with: Pivot Point Strategy, Forex News Timeline, Margin Calculator, Profit Calculator and Invest Profit calculator.

@Lorencecolling : just out of curiosity, do you also feel that such tools are helpful in settling your trades to some extent? How’s it with yours, fxview?
Would appreciate a reply.
Uczestnik z Oct 01, 2020   49 postów
Dec 03, 2020 at 10:46
williamhayes posted:
As I traded in the past, besides the leverage concern, I do assume that some of most underrated tools come in handy to arbitrate your ongoing trades.

Being a FXTM user, I mostly spent my time with: Pivot Point Strategy, Forex News Timeline, Margin Calculator, Profit Calculator and Invest Profit calculator.

@Lorencecolling : just out of curiosity, do you also feel that such tools are helpful in settling your trades to some extent? How’s it with yours, fxview?
Would appreciate a reply.
it’s not my bank account password you are asking for so I am all in for sharing my experiences :)

I am more into intuitions and instincts so don’t use them much.

Besides not operating all calculators (commissions, margins, pip values, swap, profit/loss, fibonacci, position sizes, pivot points) I rarely use autochartist on fxview for real time updates when I have my eyes glued to the screen.

Fine tuning my strategies is my only strategy to more successful trades (about 70%).
Uczestnik z Jul 20, 2019   373 postów
Dec 04, 2020 at 08:54
Why are you all advertising for your brokers here? The question was about leverage not about brokers. 🙄
The higher the leverage the higher the risks (that you'll lose it all (if huge losses), or that the broker won't pay you out (if huge profits)).
patience is the key
Uczestnik z Jul 20, 2020   341 postów
Dec 06, 2020 at 10:11
I think High leverage means high risks if you don't have enough knowledge about using the leverage.
Uczestnik z Oct 01, 2020   37 postów
Dec 08, 2020 at 12:57
williamhayes posted:
As I traded in the past, besides the leverage concern, I do assume that some of most underrated tools come in handy to arbitrate your ongoing trades.

Being a FXTM user, I mostly spent my time with: Pivot Point Strategy, Forex News Timeline, Margin Calculator, Profit Calculator and Invest Profit calculator.

@Lorencecolling : just out of curiosity, do you also feel that such tools are helpful in settling your trades to some extent? How’s it with yours, fxview?
Would appreciate a reply.
I completely agree. High leverage should be left to the experts. Not everyone can handle that specially the newbies around. If the trade goes in the opposite direction, you’ll lose it all.
Uczestnik z Apr 15, 2020   219 postów
Dec 09, 2020 at 07:22
posted:
Are high and low leverage two sides of the same coin? I have started fresh in forex and not able to make a right judgment for a good leverage.

Not sure how correct it is to say there are high risks with high leverage.

Recommendations needed from experience holders.

I think high leverage will put your capital in high risk. 1:500 should be maximum for all although different brokers are offering different leverage but ultimately profit making in forex depends on your skills only.
The more your practice, the more you learn.
Uczestnik z Jul 15, 2020   36 postów
Dec 09, 2020 at 10:32
Ezereombre posted:
Fxview?? Never heard! Another offshore I bet

I use Fxview and it is fine. I think as long as your trade is good, it doesn’t really matter if the broker is local or not. At least it‘s regulated (not that it matters to me).
Uczestnik z Oct 05, 2020   21 postów
Dec 10, 2020 at 13:25
I don’t think you should worry so much. Just choose the right platform and trade. I trade with XTB and Forex.com. The leverage varies from trade to trade and is usually high. Since it has worked for me, I go with it.
Uczestnik z Jul 19, 2020   788 postów
Dec 25, 2020 at 02:21
The higher the leverage, the higher the risk. So 1:50 leverage should be used to control the risk.
Uczestnik z Nov 05, 2020   54 postów
Jan 11, 2021 at 07:58
If a trader does not know how to manage capital and predict the most likely outcome of a trade, then a large leverage can only harm him. Therefore, after a while I just started using leverage up to 1: 1000
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