AliaDare posted: Leverage helps provide investment security. If leverage is selected extra, the account may be at risk. So I think 1:50 leverage should be used.
Yes, I am with you on this one. Leverage should be kept as low as 1:50 since the risk tends to increase if we keep using high and high leverage with each trade.
Yes, the risk can be high with a high leverage but you can always deploy some risk management techniques to reduce the possibility of high loss.
But doesn’t that require a lot of expertise?
See you can practice how to use stop loss correctly to keep a check on your trade. This will also help you to minimize the losses. There is not a lot that you’ll have to do but with certain trials and practice, you’ll get the hang of it. I also started with a little knowledge with IB and Fxview but I kept practicing and understood how things work in forex.
Leverage is very important for online trading. Without leverage traders like us won't be able to be trade. To open a .01 lot trade, one needs 1000$. Everyday a currency pair moves in a fraction in decimal. Without leverage good profit is not possible.
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.
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