Leverage is among the things that made forex trading very unique because leverage makes one to have chances of making good amount of profits even with small amout of capital,so leverage is good but as well as risky cause the higher the leverage the higher the risk.
Leverage give traders ability to buy contract size with using margin only, common trading activity usually using no leverage, trading in forex market have to buy currencies in lot size, standard for 1 lot is 100,000 so if no leverage used than only big boys with huge money can trade forex
yes Gleywilleyy, But one of those risk management techniques that you mention could be a leverage of 1:50 and I think it is one of the most suitable to be able to work with little capital and not risk too much.
JulioLopez posted: yes Gleywilleyy, But one of those risk management techniques that you mention could be a leverage of 1:50 and I think it is one of the most suitable to be able to work with little capital and not risk too much.
Yea, 50x seems fine, but I don't know why, but it feels bit too high.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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