High leverage , High risk ?
ChenChenGu
Členom od Aug 20, 2018
6 príspevkov
Aug 20 2018 at 13:35
One would need big account for risk 1-2% . If I do that i make only cents on a trade. What the point then
Adribaasmet
Členom od Aug 27, 2017
886 príspevkov
Aug 20 2018 at 13:37
LongVision posted:
if you are taking 1-2% risk per trade and trading few currency pair you may need leverage of 1:10 only. So most of time you are using only part of leverage that is provided by broker if you use strict money management.
Yes, 1-2% is the decent amount; trading with an aggressive trading leverage is always costly. In addition, money management is one of the most important issue here.
Carlos
(CarlosMZ)
Členom od Apr 07, 2015
55 príspevkov
Aug 22 2018 at 06:37
Guys, guys... hold your horses.
The leverage used has nothing to do with risk management.
Those are two completely separate things.
You can risk 2% with 1:1 leverage and with 1:500 leverage.
The leverage used has nothing to do with risk management.
Those are two completely separate things.
You can risk 2% with 1:1 leverage and with 1:500 leverage.
arcadio
Členom od Aug 23, 2018
2 príspevkov
Aug 23 2018 at 14:13
CarlosMZ posted:
Guys, guys... hold your horses.
The leverage used has nothing to do with risk management.
Those are two completely separate things.
You can risk 2% with 1:1 leverage and with 1:500 leverage.
I totally agree with this. Leverage itself is only a tool and has nothing to do with risk. Its your choice how you use it. Limiting leverege for everybody is like banning sharp knives because some people could harm themselves.
Thanam FX
(thanamfx)
Členom od Aug 29, 2018
4 príspevkov
Sep 02 2018 at 07:03
CarlosMZ posted:
Guys, guys... hold your horses.
The leverage used has nothing to do with risk management.
Those are two completely separate things.
You can risk 2% with 1:1 leverage and with 1:500 leverage.
if you are unitising 500 leverage you can't
$100 account 500 = 50000
if you open 0.5 lot
spread itself almost 5% and -10 pip is margin call on most broker
TeraPips
Členom od Sep 03, 2018
19 príspevkov
Sep 03 2018 at 13:40
It looks like risky but it's not really risky in our understanding. The only difference between leverages is bad to worse differences in losses. Right mindset or sound knowledge is much suitable for right use of leverage, gambling can blew up your account too early.
vontogr
(togr)
Členom od Feb 22, 2011
4853 príspevkov
Sep 03 2018 at 13:55
TeraPips posted:
It looks like risky but it's not really risky in our understanding. The only difference between leverages is bad to worse differences in losses. Right mindset or sound knowledge is much suitable for right use of leverage, gambling can blew up your account too early.
Leverage has nothing to do with money management.
With good money management + high leverage you can have higher profit and the same compared to low leverage
LikeMustard
Členom od Aug 29, 2018
10 príspevkov
Sep 03 2018 at 14:41
That is so right. People lose money because they don't use money management techniques or use a rubbish strategy. Leverage has nothing to do with it. I could use a 1:1000 leverage account but with proper usage or Lot sizing and stop loss I can safely manage my losses
Voket EA
(voketexpert)
Členom od Aug 30, 2018
25 príspevkov
Sep 04 2018 at 14:02
The bigger the amount of leverage on the capital you apply, the higher the risk that you will get. Note that this risk is not always related to leverage-based margins although it can affect if a trader is not careful.
Pips are absolute aphrodisiac, so trade with your brain not your lust. Forex will always be the same.